StatsCan on non-bank lenders' mortgage arrears rate

Uninsured loans accounted for the bulk of mortgages in arrears for over 90 days

StatsCan on non-bank lenders' mortgage arrears rate

The number and value of mortgages in 90+ day arrears among non-bank lenders has decreased for the third straight quarter, according to Statistics Canada.

As of the end of Q1, a total of 3,387 residential non-bank mortgages were in arrears for over 90 days, representing a 11.3% decrease from Q4 2020. The total value of these mortgages was $867.4 million (down 6%), while their average value grew from $241,499 to $256,088.

These arrears comprised 0.2% of the total number and 0.26% of the total value of outstanding non-bank mortgage loans at the end of the first quarter, Statistics Canada said.

Read more: Which demographic has the highest mortgage delinquency rate in Canada?

“Smaller lenders (those in the first quartile), had more mortgages in arrears for over 90 days compared with other larger lenders, with 3.2% of their total outstanding mortgages in arrears for more than 90 days,” Statistics Canada said. “Conversely, lenders in the third quartile had the lowest share of outstanding mortgages in arrears over 90 days, at 1.4%.”

Of these mortgages in arrears, 66.4% were uninsured, with their value falling by 5.4% from Q4 2020 to $576.0 million, and their number dropping by 11.7% to 1,853 accounts. The remaining insured mortgages (33.6%) also saw declines in their value (down 7.1% to $291.4 million) and number (down 10.8% to 1,534) during the first quarter.