MCAN says that lower home sales are forecast in Ontario and British Columbia as regulatory changes continue to impact the markets, while interest rates should continue to support the national market.
The mortgage lender says that it is well positioned to adapt to the changing market and does not expect a significant financial impact to its business.
In the second quarter of 2017, MCAN’s commercial mortgage portfolio increased by $51 million to $912 million; and comprised increases of $33 million in completed inventory loans, $17 million in commercial loans, $11 million in construction loans and $7 million in insured single family, partially offset by a decrease of $17 million in uninsured single family.
The firm reported its quarterly results Friday with net income down to $8.9 million, down from $13.6 million in the second quarter of 2016. The decline was mainly due to the recognition of $3.8 million of distribution income in Q2 2016 from its investment in Crown Realty II Limited Partnership.
Impaired mortgages improved during the quarter to $4.4 million from $6 million.