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CMHC insured mortgages increase 26 per cent, home equity rises
11/30/2016 | Posted in Mortgages and Real Estate by Paul DeAdder | Back to Main Blog Page
![CMHC News](http://crworks.com/partner/images/blog/105354/cmhc-news-7.jpg)
Canada Mortgage and Housing Corp., the Crown corporation that controls about half of the mortgage default insurance market in the country, continues to shrink its business.
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.”
The Crown corp. also noted that as of Sept. 30, 2016, overall arrears are at 0.32 per cent, the same as the previous quarter. The total number of loans in arrears was 8,286 as at Sept. 30, 2016.