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Subprime Mortgage Growth & Decline

Mortgage-Growth A reader was kind enough to send us this graph on the right (click to enlarge).

It depicts the recent monthly growth rates, versus the prior year, of non-conforming/subprime Canadian mortgages.

As is evident from the chart, Canada’s subprime mortgage volumes started slowing in spring 2007, well before the August commercial paper meltdown.  Most people consider August 2007 to be the start of the subprime market’s decline in Canada.

The graph is based on data from the Filogix monthly Mortgage Broker Market Report.  Filogix operates the leading mortgage origination network in Canada. 

The data reflects only mortgage broker sourced mortgages, but it’s a good proxy for the industry because brokers arrange the majority of non-traditional mortgages in Canada.