Most non-bank mortgages are uninsured says Statistics Canada

by Steve Randall on 29 Oct 2019

More than half of residential mortgages held by Canada’s non-bank lenders are uninsured.

Statistics Canada says that there were 1.7 million non-bank mortgages outstanding at the end of the first quarter of 2019, with a total value of $324.9 billion and an average value of $188,820.

Of those, 57.4% by value, totaling $186.4 billion, were uninsured. As a share of the number of mortgages, 63.9% or 1.1 million were uninsured.

In its survey of non-bank mortgage lenders, StatsCan also discovered that the average value of outstanding uninsured mortgages was $169,575, one-third lower than the average value of outstanding insured mortgages ($222,843).

Most extended mortgages from non-bank lenders are also uninsured with 56.9% of the 124,171 mortgages extended by non-banks in the first quarter (totaling $32.8 billion) being uninsured.

The average value of all residential mortgages extended by non-banks was $263,853 and again, the average value of the uninsured share was lower ($249,138) than those that were insured ($286,123).

The mortgages extended in Q1 2019 represented 10.1% of the total value and 7.2% of the total number of residential mortgages outstanding. 

Uninsured mortgages in arrears
The analysis of non-bank mortgage lenders reveals that 65.1% of residential mortgages that were in arrears of 90 days or more, were uninsured.

Their average arrears was $216,924 and these mortgages represented 0.2% of the total value and 0.1% of the total number of outstanding mortgages.

Post a Comment

Most Trending News

Bitcoin and real estate: can you buy real estate with Bitcoin investments?
News

With Bitcoin becoming such a success and increasing in value, is it a smart move to use it to purchase real estate? Yes and no. Here are some things to keep in mind.

Read More
These homes earn more rental income than condos
News

This broker says there are more investment opportunities in Mississauga's semi-detached market because you can benefit from two incomes - renting the basement and the upstairs.

Read More
In Toronto, rentals are making more sense than ownership
News

Many people can't secure that 20% down payment to start their homeownership journey. This may be why rentals are exceeding demand in Toronto.

Read More