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