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.
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.
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.
