Tighter financing conditions have had the effect of favoring non-traditional lenders, which last year experienced higher mortgage volume growth than traditional mortgage lenders, a new study confirms.

“The market share of small lenders increased from 11% to 13.4% last year, writes JLR in its study entitled Report on the mortgage market in Quebec 2022 and published on Wednesday.

These observations are in line with those made in the fall by the Canada Mortgage and Housing Corporation (CMHC). “Growth in mortgages from non-traditional lenders is outpacing that of traditional lenders,” reads CMHC’s Residential Mortgage Industry Report, released in the fall.

“This unregulated segment of the industry has likely attracted a greater number of borrowers who have been unable to meet the eligibility criteria of a traditional lender in the context of rapidly rising interest rates” , explained at that time the CMHC.

Unlike the CMHC report, which paints a Canadian portrait of the mortgage market, the JLR study focuses on Quebec.

This Montreal real estate data firm monitors the mortgage deeds that are filed in the land register on a daily basis. JLR is thus equipped to estimate the market share of the main lenders in a market context marked by rising interest rates.

The number of loans is divided equally between mortgages related to the purchase of a residential or non-residential property and those related to renewal or refinancing.

The document published by JLR focuses on mortgage loans linked to the purchase of a property for methodological reasons.

Desjardins Group remains the market leader. JLR estimates its market share in the province as a whole at 40%. More popular in the region, it still remains the number one lender in the Montreal metropolitan area with market shares of around 30%.

JLR’s calculations are based on the number of residential and non-residential mortgages, not dollar volume.

However, according to JLR, the main mortgage lenders are in order: Desjardins (40.3%), National Bank (13%), Royal Bank (10.2%), BMO (7.7%) and TD (6.6%). Among the main financial institutions, Laurentian brings up the rear. “[It] has remained a marginal lender with market shares below 1% for 5 years now,” writes JLR.

In the Montreal area, Desjardins remains in the lead (27.9%), followed by Royal (13.6%), National (12.5%), BMO (10.4%) and TD (8.9%). ).