Most non-bank mortgages are uninsured: StatsCan

The majority of mortgages provided by non-bank lenders are uninsured, and more than half of the loans from these firms that are in arrears are also uninsured, according to new data from Statistics Canada.

For the first time, StatsCan has published data on non-bank mortgage lenders, which found that they held 1.7 million residential mortgages in the fourth quarter of 2018, with a total value of $325.5 billion.

Two-thirds of these loans (1.1 million loans worth $188.0 billion) were uninsured, StatsCan reported.

That data also showed that 34,638 residential mortgages (worth $6.4 billion) were in arrears by at least a day in the fourth quarter. Of these mortgages, 62.5% were uninsured, StatsCan noted.

There were also 4,249 mortgages in arrears by over 90 days, StatsCan reported, with a total value of $930.4 million. Of these, 59.4% of the loans were uninsured.

Staff

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