Home Equity Increase As Insured Mortgage Goes Up

The number of mortgages together with support from insurance derived from the Canada Mortgage and Housing Corporation increased by 26.8 per cent in the third quarter of this year. From the numbers that were shown in the quarterly report, it indicated that the 127,991 were covered by the organization from the month of July to September, unlike that of last year’s period.

The value of the total mortgage which is supported by CMHC went down by $9 billion to $514, which is less than the $600 billion insurance-in-force limit that was fixed by the legislation. The report by CMHC revealed that the home equity went up moderately by 34.8 per cent during the third quarter of this year from its previous 34.4 per cent from the second quarter.

Survey revealed that the CMHC-insured mortgages are doing well handling their debts, with an average credit rate of 751 and a regular gross debt proportion of 25.7 per cent. The CFO for CMHC, Wojo Zielonka said; “Despite economic challenges in parts of the country, we continue to generate a positive return for all Canadians. 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.” September 30 of this year recorded a total number of unpaid debt at 8,286.