Do the banks hold the mortgages

[ggonzo]

Do the Canadian Banks sell their mortgages to third companies like in the US - for example - Fanny Mae, Freddie Mac? Do the banks hold the mortgages?

[trent]

I believe that Canadian banks hold the majority of the mortgages they originate. However one wonders if this is a good thing for the banks, because with the crashing Canadian real estate market, these mortgages are losing value.

[Jason]

American lenders rely mainly on securitization, and once packaged the mortgages are sold investors. Canadian banks and mortgage lenders usually hold the mortgages they originate.