BC Construction partners with MIC
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PRINCE GEORGE – The BC Construction Association, which includes the Northern Regional Construction Association, is taking a bold move to help get its membership into their first home. It has partnered with Impact Mortgage Investment Corporation to provide mortgages that will be amortized over a longer period of time, lowering the monthly rate.
“Why this is attractive is because [the borrowers] not meeting the critieria of the credit union or the bank to borrow enough money to buy a home,” explains Peter Elkins, the CEO of Impact MIC. “We encourage them to go to the bank when the equity is enough to get a traditional mortgage. So this is about issuing first mortgages in high-value markets. We’re not doing second mortgages or line of credits.”
MIC’s do not face the same rules as banks and credit unions, which means they are not subject to things like the stress test, and they are able to issue mortgages amortized over longer periods of time. For example, the monthly payment on a $500,000 property at three per cent interest is $2,371 when amortized over 25 years. However, the monthly payment for the same property under the same interest rate over a 40-year mortgage is $1,790.
Mortgage Investment Corporations have been in Canada since 1973 and there are over 200 in the country.
