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Non-bank lenders now control nearly a third of the market for new mortgages in Canada, roughly $100-billion to $140-billion per year. (Getty Images/iStockphoto)
Non-bank lenders now control nearly a third of the market for new mortgages in Canada, roughly $100-billion to $140-billion per year. (Getty Images/iStockphoto)

Non-banks ‘crippled’ by Ottawa’s changes to mortgage lending Add to ...

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Canada’s non-bank lenders are reeling from Ottawa’s latest moves to cool Canada’s housing market, with many forced to immediately hike their mortgage rates or scale back their businesses.

First National Financial, the country’s largest non-bank mortgage lender, sent a note to its mortgage-broker clients last week announcing that it had temporarily suspended mortgages for rental properties. It did the same for “stated-income” loans to borrowers who can’t verify their employment using traditional means, such as self-employed and contract workers. The company’s shares fell nearly 20 per cent last week.

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