Subprime Mortgages and Vancouver Real Estate

People keep asking me about this issue so I thought I should write a blog on it.  The first thing I want to make clear is what a subprime mortgage is not: it is not a mortgage below prime rate!  What it is, is a mortgage provided by a non-mainstream lender usually to a buyer who cannot qualify for a mainstream mortgage.  Because they are offering you a service that you can't get in the usual way, there is an increased charge to use these lenders.  The terms may also be less favorable. Generally I would suggest that you avoid using these lenders if it is at all possible for you to qualify for a mainstream mortgage.  If you must use one, then I would recommend that you have a GOOD mortgage broker assist you to ensure you are best protected.