MCAN Mortgage sees headwinds amid policy changes

The outlook for the Canadian housing market remains mixed according to MCAN Mortgage Corporation.

The lender says that the market is likely to remain volatile for the remainder of the year with a mixed performance regionally. The full impact of multiple changes in mortgage insurance rules, underwriting, taxes, and interest rates will take 6-12 months.

MCAN believes that there is still a risk of a price correction into 2018 in several markets. It says that actual sales activity in the year to September was down 11% with the GTA leading decline in three quarters of markets.

The firm made its forecast in its third quarter financial results with net income of $9.9 million, up 1% from the same period of 2016.

Impaired mortgages improved to $3.5 million from $4.4 million during the quarter while the impaired total mortgage ratio increased to 0.14% from 0.12%.

Total mortgage arrears improved to $19 million from $22 million with the quarterly total comprised entirely of single family mortgages of which $7.4 million were uninsured.

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