The CMHC has published its financial results for the second quarter of 2016 with a warning over the rise in mortgage arrears in Alberta.
The overall tone of the report was positive with CMHC highlighting the strength in its portfolio with 0.32 per cent of its loans (8,386 mortgages) in arrears, down from 0.34 per cent at the end of the first quarter.
In Alberta though, there was a 52 per cent rise in mortgages with arrears of at least 3 months, compared to the second quarter of 2015. The percentage of loans in arrears in the province was up from 0.35 per cent at the end of the first quarter of 2016 to 0.41 per cent at the end of the second quarter.
BC, Quebec and Ontario led the provinces with declining rates of arrears. Ontario also has the lowest rate overall with just 0.15 per cent of CMHC-insured loans in arrears.
The size of CMHC’s
mortgage insurance business was down by $3 billion to $523 billion while the average loan insured was up 0.5 per cent to $237,628 for the first six months of 2016 compared to the same period of 2015.
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