There was a 26.8 per cent rise in the number of mortgages backed by insurance from the Canada Mortgage and Housing Corporation in the third quarter of 2016.
Figures from its quarterly report show that 127,991 units were insured by the corporation from July to September compared to the same period of 2015.
Meanwhile, the total value of mortgages backed by CMHC fell by $9 billion to $514 billion, well below the $600 billion insurance-in-force limit set by legislation.
CMHC’s report also reveals that there was a slight increase in home equity during the third quarter of 2016, up to 34.8 per cent from 34.4 per cent in the second quarter.
The data shows that those with CMHC-insured mortgages are managing their debts well with credit ratings averaging 751 and an average gross debt ratio of 25.7 per cent.
“Despite economic challenges in parts of the country, we continue to generate a positive return for all Canadians,” commented CMHC’s CFO Wojo Zielonka. “What’s more, our portfolio remains strong as evidenced by the increasing equity borrowers have in their homes and the downward trend of our arrears rate, among other factors.”
Total number of loans in arrears was 8,286 as at September 30, 2016.
Steve Randall has more than three decades of media experience encompassing online, newspapers, magazines, radio, and podcasts. He focuses on insights and news for professionals in finance, real estate, and legal services. Steve writes for multiple Key Media titles in Canada, United States, Australia, and New Zealand.
