Canadian Mortgage Advisor
8-8 Strathearn Avenue
Greater Toronto Area , ON , L6T 4L9 Canada
1-416-930-1225

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Helping GTA Homeowners find a mortgage that is right for them
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It is a long history spanning several decades – Mortgage in Canada


History of Canadian banks and mortgage –

Mortgage Market ShareThe Bank of Montreal was founded in 1817. A number of other banks later followed. The British North America Act of 1867 (a.k.a. Constitution Act 1867) let the crown grant rights to Canadians of land use. Today, in Ontario Crown owns the residual interest in land.
Originally mortgages were provided mainly by insurance companies. Until recently when the Bank Act in 1954 was introduced, the banks were not allowed in the residential mortgage market, but they were allowed to charge only up-to 6% interest. In 1967 the Bank Act was amended to remove that 6% cap.Today there are mainly three types of Banks in Canada-

Types of Banks
  • Schedule I: Banks allowed to accept deposits and which are NOT subsidiaries of a foreign bank.
  • Schedule II: Banks allowed to accept deposits and which are subsidiaries of a foreign bank.
  • Schedule III: Foreign banks permitted to carry on business in Canada.

 


There are mainly five Schedule I banks in Canada. The details of them are given below in the table.

Banks Royal Bank of Canada (RBC) Toronto-Dominion Bank (TD) Bank of Nova Scotia (BNS) Bank of Montreal (BMO) Canadian Imperial Bank of Commerce (CIBC)
Started on 1864 1955 1832 1817 1867
Name when started Merchants’ Bank of Halifax Bank of Toronto, Dominion Bank Bank of Nova Scotia Bank of Montreal Canadian Bank of Commerce and Imperial Bank of Canada

Table R.1 Schedule 1 Banks

Mortgage Market Share

Distribution of mortgage market within institutions.

The Chart (source BOC) gives an idea of how much market share a bank has. The major players are the major banks in Canada. Later in 1946 CMHC was mandated to help Canadians to get a better rate in mortgage interests by providing Default mortgage insurance.

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About Us

Sudip Adhikari.
Agent License #M10001082
Broker Mortgage Diligent -
Head Office -1305 Matheson Blvd East, Mississauga, ON L4W 1R1
FSCO #10252 O.A.C , E&OE

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