Report Shows Sharp Decline In Insured Mortgages

As current lending measure had an impact, the amount of latest mortgages insured by the CMHC had a drastic fall in the first quarter of this year. The corporation noted in its quarterly report that 48,746 home loans were insured, which decreased by 41 per cent in the same period of last year form 83,000. Insured homeowner loads decreased by 23 per cent from 24,162 to 18,624 with portfolio insurance down to 4,662 units by 87 per cent.

The overall insurance in-force by CMHC was lower ($502) than its legislated limit of $600 billion. The value of the company’s insured loans shows to be continuously getting better, with a typical worth of $260,826 and a credit score of 751. Gross average debt service ratio was 26.9 per cent and 36.6 per cent of the average total debt service ratio.

The regular share of equity for homes with CMHC mortgage insurance was 35.2 per cent, whereas, the total debt rate was 0.32 per cent. An amount of $1.5 billion for government housing projects was provided by CMHC with the company’s net income from its mortgage insurance operation which was $370 million.