First National shows strong mortgage book growth
Canada’s largest non-bank mortgage lender posted its quarterly results on Tuesday and the figures show gains in its home loan book. Mortgages under administration were up by 13 per cent in the past year to a record $87 billion (this time last year the figure was $77bn.). Mortgage originations were up by 6 per cent to $2.7 billion. Revenue though was down 3 per cent to $167.5 million and the company made a net loss of $3.5 million; down from a net income of $23.1 million in the same period last year. The lender said that the net loss was due to it securitizing more than the previous period and the surprise interest rate cut in January also led to lost revenue. However its growth in new mortgages and a rate of 64 per cent for single family mortgage renewals in the first quarter compared to the year before point to increasing strength for the business.