Government’s Mortgage Exposure Dwindles, But Who’s Counting? (Opinion) + Mortgage Bytes

The gap between insured and uninsured mortgage originations is now wider than the Grand Canyon. And it just keeps expanding, as the BoC's latest data show (chart below).

The government seems blissfully content to let the insured market wither.

The number of mortgages on CMHC's books, for example, is now below 1.5 million for the first time in over a decade. That's down one million in just six years. (There are roughly seven million mortgages in Canada total.)

Meanwhile, despite 11 years of rising prices that shut out first-time buyers in major cities, the government refuses to increase the default insurance value limit above $1 million. That's despite its 2021 pledge to do so.

That, and the uninsurability of refinances and rental properties, almost guarantee the insured-uninsured gap keeps widening.

But who pays?

The repercussions of the government's insured-mortgage pullback are many:

You don't have access to this post on at the moment, but if you upgrade your account you'll be able to see the whole thing, as well as all the other posts in the archive! Subscribing only takes a few seconds and will give you immediate access.

This post is for MLN Pro subscribers only

Subscribe now


Sign in or become a member to read and leave comments.
Just enter your email below to get a log in link.

You've successfully subscribed to
Great! Next, complete checkout for full access to
Welcome back! You've successfully signed in.
Unable to sign you in. Please try again.
Success! Your account is fully activated, you now have access to all content.
Error! Stripe checkout failed.
Success! Your billing info is updated.
Error! Billing info update failed.