MCAN Mortgage profits up 11% from same period last year
MCAN Mortgage announced a net income of $11 million for the third quarter of 2018, up 11% from the same period last year.
Total mortgage arrears for the third quarter stood at $17 million, down from the previous quarter’s $21 million. On the other hand, the impaired total mortgage ration of 0.03% is up compared to last quarter’s 0.02%.
MCAN predicts a mixed outlook for the Canadian real estate market until the end of the year. “Canadian residential real estate markets continue to have a mixed performance as regional markets adjust to both regulatory changes and local economic conditions,” said MCAN.
“We expect Canadian housing market conditions to experience downward pressure and uncertainty for the remainder of 2018 and continue to encounter headwinds into 2019 as consumers face a rising interest rate environment, challenging affordability.”
In order to respond to these challenges, MCAN will continue to give increased focus on loans for single family units. “Consistent with our disclosures in the second quarter outlook, we continue to reposition our mortgage portfolio to focus more on single family mortgages and less on construction lending given the uncertainty in the housing market, the impact of increasing rates, the overall economy and related risk factors,” said MCAN.
