Crunch hits consumers: 'Nobody wants to lend'

A worldwide credit crunch tied to U.S. “subprime” mortgages began in August. Lisa Wright Rita Trichur Business Reporters Whether you're a small business person or a consumer looking to buy a car or a home, it's becoming harder to get credit. Toronto mortgage broker Ranjit Dhaliwal says credit is "most definitely" tightening in Canada, noting that he's turning down many prospective home buyers because they don't qualify for a mortgage. On top of that, defaults are also skyrocketing. "People were always able to turn to private lenders when the banks turned them down. But as a private lender, I've pulled back and a lot of others are, too. "Basically nobody wants to lend and if they are, they're charging much higher rates (above the prime rate), which makes it unaffordable for more people," he explained. He said he has seen a 50... [read full story]