By Troy Media
A report released on Monday by Statistics Canada says more than half of outstanding residential mortgages in Canada are uninsured.
The total number of outstanding residential mortgages from non-bank lenders at the end of the first quarter of 2019 was 1.7 million, at a total value of $324.9 billion. The average value of those mortgages was $188,820, said the federal agency.
“Uninsured mortgages represented over half (57.4 per cent, or $186.4 billion) of the total value and almost two-thirds (63.9 per cent, or 1.1 million) of the total number of outstanding mortgages. The average value of outstanding uninsured mortgages was $169,575, one-third lower than the average value of outstanding insured mortgages ($222,843),” it said.
In the first quarter of 2019, non-bank mortgage lenders in Canada extended 124,171 residential mortgages at a total value of $32.8 billion. The average value of these mortgages was $263,853, explained StatsCan.
“Uninsured mortgages extended accounted for over half of the total value (56.9 per cent, or $18.6 billion) and over half of the total number (60.2 per cent, or 74,769) of residential mortgages extended. The average value of uninsured residential mortgages extended ($249,138) was lower than the average value of insured residential mortgages extended ($286,123),” it said.
“Overall, the residential mortgages extended during the quarter represented 10.1 per cent of the total value and 7.2 per cent of the total number of residential mortgages outstanding. … In the first quarter of 2019, nearly two-thirds (65.1 per cent) of residential mortgages in arrears over 90 days were uninsured. These mortgages represented 0.2 per cent of the total value and 0.1 per cent of the total number of outstanding mortgages.
“On average, the value of mortgages in arrears over 90 days was $216,924.”
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