MCAN Financial Group grows managed assets to $9.4 billion as insured originations surge 27%
MCAN Mortgage Corporation d/b/a MCAN Financial Group, Canada’s federally regulated mortgage investment corporation (MIC), reported a 21% rise in total assets under management to $9.4 billion for the nine months ended September 30.
Strong residential mortgage originations, expanding securitization activity, and steady broker-driven renewals each contributed to the result.
Net interest income for Q3 2026 rose 12% to $26.7 million compared with Q3 2025.
Year-to-date net income climbed 16% to $66.2 million, underpinned by higher lending volumes and income from MCAP Commercial LP, the company’s strategic partner.
Quarterly net income declined 6% to $19.2 million on unrealized losses in MCAN’s securities portfolio.
Broker-driven volumes lift residential mortgage assets
Residential mortgage assets reached $5.1 billion at September 30, up 11% year to date. Insured assets grew 13% to $3.7 billion; uninsured assets rose 8% to $1.4 billion.
Against the same nine months of 2025, insured originations surged 27% and uninsured originations rose 13%, building on MCAN’s expanding origination base through the first half of 2026, when second-quarter net income jumped 19%.
“Strong growth in our assets under management reflects the continued execution of our strategy,” said Derek Sutherland, chief executive officer of MCAN Financial Group.
“Our business continues to perform well in all our main product lines, despite uncertainty in the broader economic environment, supported by strong mortgage originations and renewals, disciplined pricing and hedging strategies, as well as our strategic partnership with MCAP. We believe we are well-reserved in our allowance for credit losses and our sound underwriting practices ensure our credit quality remains resilient.”
That resilience is built on the broker channel. Speaking in a recent Canadian Mortgage Professional roundtable examining Canada’s evolving alternative lending landscape for mortgage brokers, Avish Buck, senior vice-president and chief operating officer of MCAN Financial Group and president of MCAN Home Mortgage Corp in Toronto, said: “When a broker works with MCAN, it means they trust us with their client, and that’s something we take seriously. Trust is the core of any relationship.”
Construction mortgages rise 9%, but impairments climb
Construction and commercial mortgage balances grew 9% year to date to $1.3 billion, with loan advances of $359 million through September 30.
Project extensions tied to permitting and zoning delays, as well as a more cautious economic environment, have affected parts of the portfolio.
The impaired non-securitized mortgage ratio rose to 2.31% from 1.69% at December 31, 2025, driven by construction loans and uninsured residential mortgages under asset recovery.
Provisions for credit losses totalled $5.7 million year to date. Average loan-to-value ratios of 68.2% on uninsured residential mortgages and 62.8% on construction loans point to credit quality challenges facing Canadian mortgage lenders that remain manageable for a conservatively underwritten book.
In October, MCAN launched an additional uninsured residential mortgage securitization program with a major Canadian bank to further diversify funding.
Year-to-date income from MCAP reached $27.6 million, up 8%. The board declared a fourth-quarter dividend of $0.43 per share, payable January 4, 2027 to shareholders of record December 15.
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