The Caisse de dépôt does not only make people happy with its mortgage loans

With its subsidiary MCAP, the Caisse de dépôt is increasingly present in the residential mortgage sector in Quebec, but several clients are dissatisfied with their experience with this “virtual” lender.

• Read also: Caisse de dépôt: loans to the dismissed boss

• Read also: Former CEO of a Caisse de dépôt subsidiary fired for ethical breaches wants more money

“It was so catastrophic [avec MCAP] that I applied with another institution [Tangerine]. It took three days and it was fixed,” he told Newspaper a woman from the Montreal area who requested anonymity.

However, she had planned ahead: she began working with a broker in December to renew her loan which was due in February.

“In March, it was still not resolved,” she said. I found myself having a rate of 10% for three months because I had not managed to close with MCAP.

Like many Quebecers, this client did not know that MCAP, an Ontario company, is controlled by the Caisse de dépôt. “Wow!” did she react when The newspaper taught him.

Negative comments

On Google, there are many negative reviews about MCAP. The firm’s overall rating is barely 2.7 compared to 4.5 for its big rival, First National. The rating of Merix, another mortgage lender owned by the Caisse, is a little better: 3.4.

Customers like Clotilde Schira, however, say they are satisfied with MCAP. “Nothing special to report,” she says.

“I never have a problem waiting on the phone and my questions are always answered well,” says David Liscourt, specifying however that his file is not complicated.

“Not risk takers”

Unlike banking institutions, virtual lenders like MCAP and First National do not lend their own money, but funds they raise from outside investors. They often offer better rates, but they tend to shy away from more complex cases.

“They are not risk takers,” summarizes Vincent Bernier, mortgage broker at Planiprêt.

He maintains that his clients are generally very satisfied with MCAP and First National, but warns that some notaries refuse to deal with them or charge higher fees to do so.

Virtual lenders “leave a little more work to notaries,” notes Mr. Bernier.

The Fund goes underground

The Caisse and MCAP refused to answer questions from the Newspaper.

In 2023, MCAP has granted nearly 5,200 mortgage loans in Quebec, “including more than 1,600 to people making a first purchase,” for a total value of $1.4 billion, we read in the Caisse’s latest annual report. .

There is regulatory uncertainty regarding virtual lenders in Quebec. An MCAP client entrusts Newspaper having filed a complaint with the Financial Markets Authority (AMF), but to no avail.

“We cannot follow up because this is not within our control,” replies Sylvain Théberge, spokesperson for the AMF.

The Consumer Protection Act applies to money lenders, but not to those who make “credit contracts […] guaranteed by mortgage.

MCAP in brief

• Founded: 1981
• Takeover of the Caisse: 2003
• Caisse’s participation: 78.2% (value of more than $1 billion)
• Revenue (2023): $1.06 billion
• Net profits (2023): $160 million
• Assets (2024): $155 billion
• Customers in Canada: more than 400,000

Sources: MCAN, CDPQ

What to watch for with a virtual lender or private lender?

• Read all the conditions of the contract carefully: do not stick only to the interest rate. Require that important clauses mentioned during negotiation be written into the contract.
• Make sure you understand what will happen at the end of the agreement.
• Ask the lender about origination fees, closing fees and other applicable fees.

Source: AMF

Residential mortgages: the big players in Canada

• RBC $470 billion
• TD $388B
• Scotia $313 billion
• CIBC $284 billion
• BMO $201B
• Desjardins $167 billion
• MCAP $136 billion
• National Bank $110 billion
• First National $94 billion