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 AcquisitionResources:Keystone Capital GroupCPLP Instagram: @cplpodcastKeystone Instagram: @keycapgroupFind Neal On:Instagram: @neal.andreinoLinkedIn: Neal AndreinoFind Ryan on:LinkedIn: Ryan MacNeilE-mail: [email protected]