MCAN Mortgage Corporation reported that total mortgage arrears were $48 million in the first quarter of 2017, up from $27 million in the previous quarter.
The jump was largely down to two Saskatchewan-based loans for which the borrower has filed for protection under the Companies' Creditors Arrangement Act; MCAN does not expect to make a loss as both properties have been listed for sale.
The lender’s net income was up 32 per cent to $10.3 million with financial investments and other loans offsetting lower corporate mortgage interest and equity income from MCAP Commercial LP.
MCAP’s real estate outlook for residential is that the while some of the price increases in Toronto and Vancouver have been driven by tight supply and low
mortgage rates, the elevated prices are a risk for a correction.
The lender says it has tightened its lending criteria with more conservative underwriting especially for uninsured mortgages for self-employed applicants.
It says that it will continue to monitor housing market developments as they evolve and will continue to ensure that its mortgage portfolio remains well positioned.
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