Canada’s Big Banks Disclose More Information from Their Residential Mortgage Books

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As Canada’s Leading Banks Reveal Their Regional Breakdown Of Residential Mortgages, Mortgage Expert From Syndicate Mortgages Presents His Analysis Of The Report Published In The Wall Street Journal

Marcus Arkan, CTO of Syndicate Mortgages, Canada’s leading mortgage brokerage, has recently presented an expert analysis of figures revealed by Wall Street Journal’s article ‘Curtain Lifts Higher on Canadian Banks’ Mortgage Portfolio.’ The article was published on fourth of March 2013. According to said article, Canada’s big banks have revealed the regional breakdown of their mortgages for the first time ever.

According to the report, Canada’s biggest lender in terms of assets is the Royal Bank of Canada. RBC’s largest uninsured residential mortgage exposures are in British Columbia and Ontario. Both the provinces, according to WSJ, are currently at the highest risk of correction. This is largely due to high prices in Vancouver and Greater Toronto Area.

Sharing his views on the figures disclosed in the report, Mr. Arkan said, “The report leaves a lot of information to be desired. For instance, we don’t get the granular data related to major real estate markets such as Vancouver or Toronto. Yet, it is still quite helpful data.”

Other information disclosed in the report includes figures and stats related to Home Equity Lines of Credit HELCO. However, Mr. Arkan stated that information such as credit quality of borrowers or debt service ratio would have proven more beneficial in calculating risk appetite for these big banks. “Credit quality is an important factor in determining the risk of loss for lenders. Take RBC for instance. Despite this high exposure, its credit quality and uninsured mortgages are factors that lower the risk,” Mr. Arkan added.

WSJ, further reports that the disclosure made by the leading banks is due to newly introduced mortgage underwriting practices and procedures. The Office of superintendent of Financial Institutions recently changed these practices to regulate banks and lending institutions in a more efficient manner.

Based on his analysis of information shared by the banks, Mr. Arkan had formed a conclusion that most of the banks in Canada do not face much risk in secured credits or mortgages. The risk is, he said, higher for less secured credit and personal lines of credit. Less secure credits include credit cards as well.

On the same day, one of the leading Canadian banks, BMO, announced further rate cuts on their five year fixed mortgages. At 2.99 percent, BMO currently offers the lowest advertised rate in Canada. Syndicate Mortgages helps their customers find even better rates and proper real estate consultation.

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About Syndicate Mortgages Inc.
Syndicate Mortgages Inc. is one of the leading Canadian mortgage brokerage firms. Founded in 2008 in Ontario, the company specializes in residential, commercial and construction financing across Canada. With years of experience and expertise in the mortgage industry, and access to an array of lending institutions across Canada, Syndicate is known for finding the best mortgage rates for their customers. Syndicate has branch locations across Canada. For contact, please use the following details.

Contact Details
Syndicate Mortgages Inc.
Toll Free: (888) 646-1062
Email: info(at)smibroker(dot)com

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