The value of residential mortgage loans extended by non-bank lenders grew by 25.4 per cent to $41.1 billion in the second quarter of 2019, according to a report released Tuesday by Statistics Canada.
The federal agency said the total number of extended residential mortgages also increased during the quarter to 166,482—an increase of 34.1 per cent.
“Mortgages extended during the second quarter of 2019 represented 12.6 per cent of the total value and 9.8 per cent of the total number of outstanding residential mortgages,” it said.
“The average value of mortgages extended during the quarter was $246,802, down 6.5 per cent from the previous quarter, as the number of mortgages extended grew at a faster rate than the value. Increased sales in key housing markets of condominiums and townhouses, which are often more affordable than other property types, could be responsible for the lower average mortgage value.”
In the second quarter of 2019, the total value of mortgages in arrears over 90 days decreased by 9.4 per cent to $818 million, said StatsCan.
“The total number of mortgages in arrears over 90 days also decreased, down 12.2 per cent to 3,656, which suggests that more borrowers are making their payments on time,” it added. “These mortgages represented 0.3 per cent of the total value and 0.2 per cent of the total number of outstanding mortgages at the end of the quarter, in line with national delinquency rates. Stronger labour market conditions and lower unemployment rates may have aided borrowers in repaying their mortgage debt.
“The average value of mortgages in arrears over 90 days was $223,749 in the second quarter of 2019, up from $216,924 in the first quarter.”
Mario Toneguzzi is a business reporter in Calgary.
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