CMT Team·Mortgage Industry Reports·June 13, 2011CMHC Statistics from Its Corporate Plan CMHC is Canada’s largest mortgage default insurer and its Corporate Plan Summary has a load of data about how it operates. On average, CMHC insures people with good credit, good equity, modest mortgage amounts and traditional (~25-year) amortizations. Here are other highlights… General Market Data CMHC forecasts that it will insure 706,664 mortgages this year, down 15% from its expected volumes in 2010, and down 33% from 2009. Large multi-unit properties and rural/smaller markets comprise almost 40% of CMHC’s high-ratio insurance business. CMHC insurance distribution by province: Ontario: 44% B.C.: 16% Alberta: 15% Quebec: 16% Other provinces/Territories: 9% Arrears Arrears rates on CMHC-insured mortgages are in-line with industry trends as reported by the CBA. As employment levels continue to improve, CMHC expects its already low arrears to moderate throughout 2011. Amortization and Terms The average amortization period for all CMHC-insured homeowner loans at initiation is 24 years. The average amortization period for CMHC-insured rental mortgages is 25 years. The ratio of mortgages with terms over three years: 82% Credit Quality Average credit score of CMHC-insured borrowers in 2009: 718 (the range is 300-900) Only 5% of CMHC-insured borrowers have no score or a score less than 600 69% have scores over 700 25% have scores from 600 to 699 Value and Equity Only 10% of CMHC insured properties have a value over $400,000 The average CMHC-insured homeowner has a $151,630 mortgage balance 87% of CMHC insured mortgages have a loan-to-value under 90% Average equity of a CMHC-insured borrower: 46% Other 50% of CMHC-insured high-ratio borrowers accelerate their mortgage payments CMHC plans to guarantee $20 billion in NHA MBS in 2011, and $32 billion in Canada Mortgage Bonds Rob McLister, CMT Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.