What is a Subprime mortgage anyways?

Subprime lending is the practice of making loans to borrowers who do not qualify for the best market interest rates because of their deficient credit history. Subprime lending is risky for both lenders and borrowers due to the combination of high interest rates, poor credit history, and adverse financial situations usually associated with subprime applicants. In Canada Subprime mortgages make up less than 5 percent of the market. In British Columbia we have the lowest mortgage default rate at just under 1%.

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