Non-bank lenders held over $300bn in mortgage debt in Q4 2018


Non-bank lenders held $325.5 billion worth of mortgage debt in the fourth quarter of 2018, spread over 1.7 million mortgages, according to a Statistics Canada (StatsCan) survey.

StatsCan’s first Survey of Non-Bank Mortgage Lenders showed that out of the total debt held by these lenders in Q4 2018, $188 billion was uninsured, spread over 1.1 million mortgages. That works out to 57.8% of the value and over 65% of the mortgages.

In the same quarter, non-bank lenders issued 152,554 new mortgages, representing 9% of the total mortgages held in that quarter. The value of the new mortgages was $39.3 billion, representing 12.1% of the total value of mortgages held. Out of the new mortgages, 93,197 (61.1%) were uninsured, worth about $22.8 billion (58%) of the total debt.

There were 34,638 mortgages in arrears at non-bank lenders in Q4 2018, representing $6.4 billion in value. Uninsured mortgages represented 21,641 of the mortgages, with a value of $4 billion (62% of the value and number of mortgages).

More serious mortgage arrears were equal to that at traditional bank lenders. There were 4,249 mortgages in arrears by over 90 days in Q4 2018 (worth $930.4 million), representing 0.25% of all mortgages held by non-bank lenders. Only 2,524 of those were uninsured, with a value of $587.2 million, according to a Better Dwelling report.

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