Non-bank mortgage lenders continued to see regular progress in This fall 2024, however the tempo has slowed sharply in comparison with the growth years of 2021 and 2022, in response to the most recent figures from Statistics Canada.
Rates of interest, delinquency traits and a rising share of uninsured lending all level to a altering marketplace for different lenders.
Lending volumes rise, however progress moderates
Non-bank lenders held $405.3 billion in residential mortgages on the finish of This fall 2024, up 3.5% from a 12 months earlier. That marks a roughly 20% enhance from This fall 2020, although the momentum cooled in 2023 because the Financial institution of Canada’s fast price hikes slowed each refinancing and new originations.
The full variety of excellent non-bank mortgages additionally edged increased to 1.85 million by year-end. Nevertheless, progress was uneven—flat by way of a lot of 2023 and solely choosing up once more later in 2024 because the market adjusted to a higher-rate surroundings.
With balances rising sooner than mortgage counts, the common mortgage measurement additionally crept as much as round $220,000—about 13% increased than in late 2020.
Uninsured loans now dominate portfolios
One of many largest shifts in non-bank lending in recent times has been the transfer towards uninsured mortgages.
By the top of 2024, practically 68% of all mortgage {dollars} held by non-bank lenders had been uninsured—up from 60% again in 2020. That change factors to rising demand for standard loans, usually from debtors with bigger down funds or these refinancing current properties.
On the similar time, insured mortgage volumes have been on the decline. The variety of insured loans has dropped by about 10% since 2020, and the entire greenback quantity has dipped barely to $131.9 billion. In the meantime, the variety of uninsured loans has grown by round 16% over that very same interval.
Delinquencies on the rise—particularly for uninsured loans
Whereas most non-bank debtors are nonetheless maintaining with funds, there’s been a noticeable rise in delinquencies—significantly within the uninsured phase.
By the top of 2024, practically $7.8 billion price of uninsured mortgages had been behind on funds, up 16% from the 12 months earlier than. The variety of delinquent loans additionally climbed by about 5%.
And it’s not simply extra individuals falling behind—it’s greater loans, too. The common unpaid steadiness on these mortgages is now round $260,000, suggesting that debtors with bigger loans are more and more beneath pressure.
Insured mortgages, alternatively, have remained extra secure. The full worth of insured loans in arrears was $3.28 billion—up simply 2% from late 2020. In truth, the variety of insured debtors behind on funds has truly dipped barely over the previous 4 years.
By way of the general portfolio, about 2.3% of uninsured and three% of insured non-bank mortgages had been in arrears by the top of the 12 months.
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Final modified: April 23, 2025