According to the results of a Canadian Real Estate Wealth online poll, a staggering 64% of respondents prefer to get loans from one of Canada’s Big Five. These banks offer the best and most reliable services for investors, along with good interest rates, argue many investors.
Still, alternative lenders ranked second in the poll results, with 29%. Investors can often get loans from other kinds of financial institutions or professionals, and although their rates may not be on par with those offered by banks, they still offer stability and a decent level of service to their customers.
Tied for last place with 3% each were private lenders and joint venture deals. That may surprise some investors now frustrated by new bank lending guidelines, which have made it harder for all investors with more than five properties to get additional financing. Many are now turning to joint ventures as a way of overcome that hurdle.
Still, going to the bank remains an option for some veteran investors – specifically those who have incorporated their businesses and are now heading to the commercial divisions of the big banks, where the number of doors is less of a concern.
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