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April 24, 2019 | Alternative Lending Has Helped Enable Housing Bust in Canada

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

This take from a Vancouver real estate agent is basic and yet little understood by many.  This credit-cycle-induced downturn is now underway folks.  Although, it is certainly not ‘unprecedented’.  It is common for people to misunderstand or miss the historical patterns and behaviour of financial cycles.

The Alternative lending space is booming and it has CIBC’s Bejamin Tal worried. According to the bank alternative lending now makes up 15% of the market in the GTA. Its likely similar here in Vancouver as I am seeing a lot of it. This space makes the financial system inherently more unstable in my opinion as these are all equity based loans on one terms. If equity drops as we are seeing now, it sets off a chain reaction. Here is a direct video link.

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April 24th, 2019

Posted In: Juggling Dynamite

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