Wendy McLellan
Province
An international company better known for its lighting and appliances introduced a new mortgage in B.C. yesterday designed for consumers who don’t qualify for traditional bank products.
GE Money Canada, a financial services unit of General Electric Co., will offer the consumer mortgage through authorized mortgage brokers in the province. The same product was introduced to the Toronto market last October.
Rick Lunny, president of GE Money Canada’s mortgage division, said the non-conventional mortgages will appeal to people who don’t have a consistent income, are new to Canada, or have some bad spots in their credit rating.
“We felt this was an under-served market,” Lunny said yesterday. “A lot of Canadians don’t qualify for traditional bank mortgages.”
He said brokers will use a web-based tool that will provide loan approvals in no more than two hours. Interest rates are based on risk, Lunny said.
Jim Murphy, communications director for the Canadian Institute of Mortgage Brokers and Lenders, said the GE Money mortgage has a few competitors with similar products that generally appeal to first-time buyers.
“It’s a mortgage option that is needed,” Murphy said. “We’re supportive of anything that assists home ownership, as long as the consumer is comfortable with the product — the more products, the better.”
GE Money is part of GE Consumer Finance-Americas, which operates worldwide and reports more than $163 billion in assets.
The company has been in Canada since 1986, when it introduced a credit card for retailers at West Edmonton Mall.
Last year, the company added a no-fee MasterCard for small and medium-sized businesses as well as sub-prime consumer mortgages. The company also offers financing through several manufacturers and a series of private-label credit cards.
© The Vancouver Province 2006