The company's announcement affects its residential mortgage portfolios in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.
The decision comes as a result of the volatile real estate market and rising debt levels in these regions. As these areas are prone to greater volatility, ResMor has determined that reducing their exposure to these markets is an important step in preserving their financial health.
ResMor has indicated that it will focus its efforts on other markets which are showing more stability in the current economic environment. This includes their presence in Quebec and Atlantic Canada. While ResMor will no longer be offering residential mortgage products in the aforementioned markets for the time being, they will continue to service existing mortgages and provide solutions that meet their customers' needs.
The suspension of residential mortgage activity has been met with both support and criticism from customers. Many have expressed understanding and patience with ResMor’s decision stating that it is a prudent move given the uncertainty of the current market. However, some customers have expressed frustration about the suddenness of the changes, explaining that it puts them in a difficult situation as they may not be able to meet their financial obligations.
ResMor Trust, one of Canada’s leading independent mortgage lenders, recently suspended activities in five provinces: British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, due to the current economic climate. This decision was made due to increased volatility in those regions and to protect ResMor’s financial health. Despite this, ResMor will continue to service existing mortgages and provide solutions to their customers.
The announcement was met with mixed reactions. While some customers sympathized and accepted the decision, others expressed frustration at the suddenness of the changes, as it may leave them unable to meet their financial obligations. Overall, this move is indicative of the uncertain economic climate in these regions.
Given the current market trends, the decision by ResMor to suspend residential mortgage activities in certain areas seems prudent. With increasing debt levels and instability in those regions, reducing their exposure was seen as an important step to protect the company’s financial health. With real estate prices continuing to decline, many other lenders are likely to follow suit in pulling back from these markets in order to protect their own interests.
Ultimately, while the news of ResMor Trust’s halt of residential mortgage activities in certain markets is troubling for those directly affected, it serves as an important reminder of the ever-changing economic landscape. It also highlights the need for consumers to be proactive in seeking out the best mortgage solution for their particular situation. As many lenders may decide to pull back from certain markets in the future, it is important for customers to be aware of the options that are available to them. With careful planning and research, customers can ensure that their finances remain secure regardless of the changing economic climate.
This article was contributed on Nov 19, 2023