The drop in new mortgage insurance, from $12.49 billion in Q2 2014 to $11.78 billion in the same period this year, is in line with the plan to reduce the CMHC’s exposure to risk.
There was a rise in the bulk portfolio insurance program as more lenders chose to insure their uninsured mortgage book.
The agency now insures $534 billion of home loans, down $17 billion from a year ago and down $9 billion from the end of last year; 41.2 per cent of all uninsured mortgages in Canada. The average value of the insured loans is up 2% to $235,384 while average credit score of borrowers increased by 3 points to 748.
The overall arrears rate was 0.34 per cent at the end of June 2015, while claims paid for the quarter totaled $88 million, an increase of $1 million from the same period last year.
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The latest financial report from the Canada Mortgage and Housing Corporation shows that the agency’s share of the mortgage insurance market dipped in the second quarter.