Who is the main provider of mortgage funds in Canada?

The main provider of mortgage funds in Canada is banks, which play a crucial role in the mortgage lending market. Banks in Canada have substantial capital resources that enable them to offer a wide variety of mortgage products to consumers. They are equipped to provide both insured and uninsured mortgages, catering to different segments of the market.

Banks also have established infrastructure and technology that streamline the mortgage application process, making it more accessible for borrowers. This includes everything from online applications to extensive customer service support. Being regulated by the Office of the Superintendent of Financial Institutions (OSFI) means that banks must adhere to strict lending guidelines, ensuring that they maintain a healthy portfolio while also providing borrowers with responsible lending options.

Other entities, such as credit unions, trust companies, and insurance companies, do participate in the mortgage market but do not dominate it to the same extent as banks. Credit unions tend to serve specific communities or members, trust companies often have more niche offerings, and insurance companies primarily focus on providing mortgage insurance rather than directly issuing mortgages. Thus, banks remain the principal source of mortgage funds in Canada due to their scale, resources, and market presence.