In this episode of Get Real Wealthy Season 2, Quentin talks about why Genworth and Canada Guaranty also need to offer multifamily mortgages like CMHC.
In Canada, there are mortgage insurers, who allow people to borrow mortgages at a lower rate because they insure those mortgages. In the residential space, CMHC and private providers Genworth and Canada Guaranty provide these services for one-to-four unit properties. You can borrow funds up to 85% loan to value, 90% loan to value, 95% loan to value depending on your credit score. As for the multifamily space, there is only one lender – CMHC. He adds that they are a money-making machine when it comes to insurance, as defaults in this space are rare.
Quentin says that Genworth and Canada Guaranty need to step into the multifamily mortgages as well. This might prompt CMHC to optimize and expedite their funding process as they would have competition. He adds “So, if you're a candidate guarantee and you're Genworth, I want to see you tell me why you're not in the multifamily space. Why would you give up millions of dollars?” In conclusion, he says that these companies are missing out on millions of dollars, and this is something they should seriously consider.
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