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
Thanks for the info, some interesting stats in there. These numbers actually dont seem that scary, i would have imagined they’d sound worse.
It is very particular to see that BC has only 16% of the total. I can see that Quebec and Ontario still hold the records for more people buying houses in Canada.
Thanks for the stats. I can see that we are doing better than our neighbor in the south.
Maple Ridge Homes
Remember, these are stats for only CMHC insured homes (including pooled CMB conventional mortgages). I think Rob had some stats from a week ago about how many mortgages in Canada are actually high ratio. Rob, can you share any info you have on the percentage of all mortgages that are high ratio (this might put this numbers into focus more). Thanks.
Think of a situation where people’s houses are 50% overvalued then look at these numbers again. I’d be more interested to see stats that stated equity at time mortgage was started in the last 10 years. I know everyone has tons of “equity” that will vaporize in the coming years as prices return to historic averages. Then these numbers won’t look so pretty when “the wealth effect” is over. Statics lie, never forget that.
Those averages distort what CMHC has done the last couple of years.Flaherty is making changes B-3.
Hi David, Roughly 4 out of 5 home owners have at least 20% equity according to CAAMP. In addition, CMHC says 71% of CMHC-insured mortgages have 20%+ equity. Cheers…Rob
One relevant stat: As of 2010, Genworth found that 49% of home buyers polled made down payments of 20% or more on their most recent home purchase.