More homebuyers opted for variable rates in Q3 says CMHC
Canada Mortgage and Housing Corporation has published its financial report for the third quarter of 2018 which also reveals insights into this year’s homebuyers.
CMHC provided mortgage insurance for 171,173 homes in Q3 and provided more than $118 billion in guarantees through its securitization programs, providing lenders with an affordable and reliable source of mortgage financing.
It also delivered more than $1.9 billion to create and support much-needed housing units for low- and middle-income Canadians, including on-reserve.
“Through the first nine months of 2018, we have continued to deliver results for Canadians, contributing to market stability and implementing initiatives under the National Housing Strategy while helping people from all across the country meet their housing needs,” said Lisa Williams, Chief Financial Officer.
Through the first three quarters of 2018, the average CMHC-insured homebuyer purchased their home for nearly $276, 000, making a down payment of 7.7% while having an average credit score of 754.
Despite the highest average purchase prices, homebuyers in British Columbia and Ontario also made the highest average down payments at 8.8% and 8.7% respectively.
Of CMHC-backed mortgages, most were 25 year amortization but there was an increase in the share of variable rate mortgages (31%).
The arrears rate for CMHC-insured loans was 0.29%.
As at September 30, 2018, CMHC's total insurance-in-force was $453 billion while its total guarantees-in-force were $484 billion.
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