Canadian Realestate Magazine forum is the place for positive industry interaction and welcomes your professional and informed opinion.

$25B Halifax contract attracts alternative lenders

Notify me of new replies via email
Guest | 19 Jun 2012, 01:35 PM Agree 0

“Equitable has served borrowers in other parts of the country for more than 40 years and now it’s time to bring our specialized mortgage solutions to Atlantic Canada,” said company president and CEO Andrew Moor. “The reason to start now is clear: The Greater Halifax Area has enormous development potential. Not only is it an economic powerhouse today, it has the business, government and social assets that will drive the success of the entire province in the years ahead.”
He’s not only one looking at the HRM through a fresh set of eyes.
Mortgage brokers in the area are already grappling with an influx of property investors from outside Nova Scotia looking to ferret out opportunities stemming from a federal contract for the Irving family’s Halifax Shipyard.
The idea is to purchase and, in some cases, build single- and multi-family properties to accommodate the hundreds of workers needed to build the facility.
Equitable is well positioned to capture some of that business.
The lender is declaring its intention to become an important alternative source for single-family residential mortgages for the area “by actively serving the community’s mortgage brokers and their clients including: first-time home buyers, business for-self-borrowers, investors, newcomers and those with credit challenges, with a suite of fixed-rate, adjustable, fully open and high ratio mortgage products.”
Halifax is now in the sightlines of real estate investors from coast to coast, said Scott Bentley, a mortgage market specialist with Verico Premiere Mortgage in Halifax. “There are a lot of investors in other provinces, both with and without Halifax roots, now eyeballing, the Halifax market since the announcement.”
That interest is expected to steadily grow in the next year, with REIN head Don Campbell suggesting price growth will follow the same kind of trajectory and not the boom-bust of some Western markets coming to terms with their newfound economic wealth.
Analysts are projecting that the federal contract for 21 Canadian combat ships -- awarded to the Irving family’s Halifax Shipyard -- will translate into a $10 million shot in the arm for yearly real estate sales. That’s for each of the next 30 years.
Looking for more in-depth information and analysis to guide you to investment success? Subscribe to Canadian Real Estate Wealth magazine now!
  • Don R. Campbell | 19 Jun 2012, 03:38 PM Agree 0
    For the first time, Halifax has made it to our Annual Top Canadian Cities For Investment list.

    As these contracts are long term and will be implemented slowly over the coming decades, the impoact will be strong, but not dynamic.

    After the initial rush of property demand, the markets will cool. Then, following a time in which the market re-sets its foundation, will again begin to build strongly.

    The good news is, these projects come at a time of world economic confusion - so even as other markets in the country ride the economic rollercoaster, Halifax and region should be somewhat sheltered (not immune).
Post a reply