Ep.144 | Canada's Big Banks Are Getting Rich Off Your Savings

Most Canadians think mortgages only come from the big six banks. They're wrong, and it's costing them. In part one of a two-part series, Ryan and Neal break down what a Mortgage Investment Corporation actually is, how it works, and why it exists in the first place.

They cover the borrowers banks turn away, how non-bank lenders get their capital, and why Canadian MICs are nothing like the Big Short. They dig into the numbers from Wawa's research: the top 43 mortgage investment entities manage nearly $38.5 billion in assets, delivered 9.2% weighted average returns in 2024, and yet still represent only 4% of Canada's total mortgage market. Compare that to the UK, where non-traditional lenders now account for 60% of gross mortgage lending.

They also break down what causes a MIC to blow up, why the biggest players are built to survive a downturn, and the uncomfortable truth about what your bank is actually doing with your savings account.

Show Chapters:

4:56 Today: What Is a MIC (Part 1 of 2)

6:09 Why Canadians Only Think of the Big 6

7:14 The Borrowers Banks Turn Away

10:44 Why Canadian MICs Aren't the Big Short

11:00 What a MIC Actually Is

13:30 What Causes a MIC to Blow Up

15:36 MIC vs Broker vs Bank

16:12 Who Actually Borrows From a MIC

18:39 $38.5 Billion Managed by the Top 43

19:22 MIC Returns: 9.2% in 2024

20:45 MICs Are Only 4% of the Mortgage Market

21:41 The UK Has 60% Non-Traditional Lending

23:32 Banks Give You 2% While Lending Your Money at 9%

25:47 Why Big MICs Will Survive the Downturn

29:39 How a MIC Expands Through Acquisition

Resources:
Keystone Capital Group
CPLP Instagram: @cplpodcast
Keystone Instagram: @keycapgroup

Find Neal On:
Instagram: @neal.andreino
LinkedIn: Neal Andreino

Find Ryan on:
LinkedIn: Ryan MacNeil
E-mail: ryan@keycap.ca