SafeGuard Underwriting

Partnering up with fintech start-up Kabbage, the Bank of Nova Scotia is set to offer small business loans to clients in Canada and Mexico, in what has been deemed a particularly effective demonstration of how traditional financial institutions can leverage the particular advantages of fintechs to provide high-quality products online.

In Alexandra Posadzki’s report for The Canadian Press, Scotiabank—which has previously invested in the Atlanta-based Kabbage—announced that it will be providing loans of up to $100,000 for up-and-coming businesses who are not currently borrowers starting July (in Canada) and August (in Mexico).

Kabbage’s technology platform makes full use of data analytics to compile credit reports within minutes, which would allow borrowers to conduct their transactions without the hassle of paperwork and going to the bank in person.

Scotiabank said that it’s aiming to offer the product to Chile, Colombia, and Peru in the near future, and throughout Canada by the first half of 2017.

OSFI (the Canadian government's top banking regulation agency) has just released a statement on regulatory revisions. These revisions would allow the banks to adapt to changes in property values by increasing the capital held against mortgages in Toronto & Vancouver. These revisions would be effective November. This means that the large Schedule A banks, such as TD, CIBC, RBC, HSBC & National Bank will have higher costs in funding. These higher costs will be passed onto the consumer, most likely with an increase to the contract interest rate.

Collateral valuation is a determining factor in whether you should lend your money. Our mantra at Safeguard Underwriting is "Drive the comps yourself". That means that we do not just look at photos on an appraisal. We take the appraisal, get in our vehicles and drive to the subject property as well as each comparable to make the determination of value ourselves. Safeguard Underwriting lets you lend with confidence every time.

If a lender's funds are to be used to finance a property that is vacant land, a development or a construction project, the details of the project and proposed use must be indicated by the borrower, developer and/or mortgage broker and solicitor with the starting and completion date.