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.

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