That’s according to a Better Dwelling analysis of Q3 2018 data

Delinquency rates on loans advanced by private lenders are many times higher than those by traditional banks.

An analysis of data from the Canada Mortgage and Housing Corporation for the third quarter of 2018 reveals that mortgage investment entities (MIEs) suffered late rates of 1.93% compared to just 0.24% at traditional banks.

Delinquency rates on loans

Delinquencies were 0.25% at mortgage finance companies (MFCs) and 0.17% at credit unions.

However, it should be noted that though this data is skewed towards private lenders, overall, on a nationwide basis, these are low.

Also, to add context, traditional lenders still dominate market shares in the lending market. Banks had the biggest slice of the pie at 75%, followed by a 14% share of credit unions. MFCs accounted for 6% of lending while MIEs brought up the rear with a mere 1%.