Majority of non-bank mortgages uninsured

More than half of Canadians’ mortgages from non-bank lenders are uninsured, according to data from Statistics Canada published Monday.

Non-bank lenders include credit unions, trusts, insurers, and mortgage investment corporations.

According to StatsCan, 63.9% of non-bank mortgages are uninsured and they represent 57.4% of the total value of non-bank mortgages

$186.4 billion worth of uninsured mortgages are held at non-banks, StatsCan says, with an average value of $169,575. By comparison, the average value of insured mortgages is $222,843.

In the first quarter of 2019 (Q1 2019), non-bank lenders provided $32.8 billion worth of residential mortgages, with an average value of $263,853.

Again, uninsured mortgages represented over half (56.9%) of the total value, and 60.2% of the volume of new residential mortgages in Q1 2019.

Nearly two-thirds, or 65.1%, of the residential mortgages that were over 90 days in arrears in Q1 2019 were uninsured, the agency reports. The average value of these mortgages was $216,924.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.