What’s Going On With Non-Bank Lenders? Here’s What You Need to Know

From Canadian Mortgage Trends

If you’ve been keeping an eye on the mortgage market (or if you’re just trying to figure out who can actually approve your loan), here’s a big update: non-bank mortgage lenders are still growing—but not like they used to.

According to the latest Stats Canada numbers, non-bank lenders (think trust companies, credit unions, and private lenders—not the big banks) held $405.3 billion in residential mortgages at the end of Q4 2024. That’s up 3.5% from the year before and about 20% higher than in 2020. Solid growth, but things have definitely cooled since the red-hot years of 2021 and 2022.

So, what’s changed?

📉 Higher interest rates have slowed the pace of borrowing.

The Bank of Canada’s aggressive rate hikes in 2023 made refinancing and qualifying for new loans tougher, especially in the alternative lending space.

💰 Uninsured loans are now the majority.

Almost 68% of non-bank mortgage dollars are uninsured, meaning borrowers either put down a bigger down payment (20% or more) or are refinancing a property. That’s a big shift from 2020, when uninsured loans made up only 60% of portfolios.

📈 Delinquencies are rising, especially in uninsured loans.

More people are falling behind on payments—particularly those with larger, uninsured mortgages. Over $7.8 billion worth of these loans were in arrears by the end of 2024, a 16% increase in just one year.

Now, before this starts sounding like a financial thriller, let’s break it down:

What does this mean for you?

If you’re self-employed, carrying debt, or you’ve been looking into private mortgage options, this data matters. Non-bank lenders are a great option when traditional banks say no—but with rising delinquencies and bigger risks, they’re tightening the screws too.

At the same time, if you’ve got equity in your home or a solid down payment, you may still qualify for these options—even as lending standards shift.

How I Can Help

This is where I come in. As a mortgage agent, I work with both traditional banks and alternative lenders to make sure you’re getting the best options for your situation—even in a shifting market. Whether you’re refinancing, buying, or just planning ahead, I’ll help you navigate these changes with confidence.

📲 Ready to see what you qualify for? Let’s connect and talk strategy.