The rise of the unregulated mortgage sector is not considered a systemic risk currently according to a memo sent by Finance Canada.

The government document, send to federal finance minister Bill Morneau in November 2015, has been revealed following an Access to Information Act request by the Globe and Mail.

The memo reveals that the agency is monitoring the unregulated mortgage lenders, which it says now has 15 per cent of the home loan market, but states: “On balance, unregulated lenders do not appear to pose systemic concerns at this time and are enhancing competition in the mortgage market.”

Finance Canada estimates that 90 per cent of the unregulated mortgage business is subject to federal mortgage rules.

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