A 20% down payment is required to avoid mortgage default insurance and about 1 out of 2 Canadian’s didn’t have 20% when they got their last mortgage. As a result, nearly 50% of Canadian mortgages today are insured. Source: CAAMP
Thomson Financial Analyst Harry Koza says the advent of covered bonds will mean “longer-term mortgages, lower rates and general customer-friendliness” for Canadian mortgage shoppers. Covered bonds are relatively new debt instruments secured by a “covering” pool of mortgage loans.
By 2010 Canadians will take out $20 billion a year in new subprime mortgages according to MyNext Mortgage Company. If our math is correct, that could equate to roughly 133,000 individual subprime mortgages in 2010.