The latest financial report from the Canada Mortgage and Housing Corporation shows that the agency’s share of the
mortgage insurance market dipped in the second quarter. The drop in new
mortgage insurance from $12.49 billion in Q2 2014 to $11.78 billion in the same period this year is in line with the plan to reduce the CMHC’s exposure to risk.
There was a rise in the bulk portfolio insurance program as more lenders chose to insure their uninsured mortgage book.
The agency now insures $534 billion of home loans; down $17 billion from a year ago and down $9 billion from the end of last year; 41.2 per cent of all uninsured mortgages in Canada. The average value of the insured loans is up 2 per cent to $235,384 while average credit score of borrowers increased by 3 points to 748.
The overall arrears rate which was 0.34 per cent at the end of June 2015 while claims paid for the quarter totalled $88 million, an increase of $1 million from the same period last year.
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