TORONTO, Dec. 8, 2014 /CNW/ - The Real Property Association of Canada is pleased to release the "2014 Canadian Institutional Commercial Mortgage Market Report" which shows the total size of the commercial mortgage market to be $144.9 billion as of May 2014, up from $139.5 billion in 2013, representing a growth of 4% over the year.
"Canada's commercial mortgage market continues to demonstrate strength. The report shows the growth Canadian institutional lenders have experienced participating In the market the result being asset growth, stable yields for investors and the creation of employment for Canadians," said William Jandrisits, President & CEO, MCAN Mortgage Corporation.
In terms of market players, life insurance companies have continued the decline in their holdings and their market share. In fact, their holdings declined by 5% over the past 5 years. Both chartered banks and credit unions have now exceeded life insurance companies in commercial mortgage market share.
National Housing Act Mortgage-Backed Securities in the multi-family category show that this large and quickly growing category of commercial mortgage holdings reached $21.5 billion in 2014. The large Canadian banks do participate in this market, but the most intensive users are Equitable Bank, First National Financial, Peoples Trust and Home Trust Company.
Commercial mortgage-backed securities ("CMBS") represent a smaller proportion of the market, just $8.9 billion in 2014. No CMBS issuances occurred in 2008, 2009 or 2010, but there have been seven new issuances since then. However, issuance volumes are still far below the levels seen in 2004 to 2007.
REALpac is Canada's most senior, influential and informative voice in the real property investment industry. REALpac brings together the industry's Chief Executives to collectively influence public policy, to educate government and the public, to ensure stable and beneficial real estate property and capital markets and to promote the performance of the real property sector in Canada. Member companies include publicly traded real estate companies, real estate investment trusts (REITs), private companies, pension funds, banks and life insurance companies with investment real estate assets each in excess of $100 million, large owner/occupiers and pension fund advisers as well as individually selected investment dealers and real estate brokerages. The commercial real estate sector makes a substantial contribution to the Canadian economy, generating $63.3 billion in economic activity in 2011. Collectively, REALpac members currently own in excess of $200 Billion CAD in real estate assets located in the major centres across Canada. Visit us at realpac.ca.
SOURCE: Real Property Association of Canada
For further information: Media are invited to contact Carolyn Lane, VP, Communications, [email protected], to receive a complimentary copy of the report.