RFA exceeds one billion dollars in mortgage loans during the first quarter

Toronto —
RFA Financial announced that its mortgage activity continued to grow during the first quarter, after the total new mortgage loans exceeded one billion dollars.

The company recorded $156.7 million in loans listed on its balance sheet, in addition to $878.1 million in off-balance sheet loans, bringing the total to about $1.03 billion during the quarter.

The company said that issuances increased by 40% compared to the same period last year, mainly driven by the growth of insured mortgage products within the high creditworthiness borrower category.

Data showed that the portfolio quality remained strong, with the average credit score for prime residential mortgage borrowers reaching 792 points, while the alternative lending portfolio recorded an average of 698 points.

The delinquency rate also remained very low at 0.024%, compared to the Canadian market average of 0.26%, which the company said reflects the portfolio's resilience and borrower quality.

RFA recorded a net interest income of $10.8 million, with a net interest margin of 2.7%, while its bank's Tier 1 capital ratio reached 18%.

The company operates through RFA Bank of Canada, specializing in alternative and commercial lending and construction financing, alongside RFA Mortgage Corporation, which operates in residential mortgages through the broker channel.

The management confirmed that it aims to raise total lending assets to between $8 and $12 billion, supported by an expected increase in annual issuances and the use of proceeds from real estate asset sales to support the growth of mortgage and banking activities.