Thursday, September 26, 2013

What is US vs Canadian Mortgage Delinquency?

The already low rate of arrears on mortgages insured by the Canada Mortgage and Housing Corp (CMHC) declined further in the second quarter, an indicator which might temper concerns about a possible hard landing for the housing sector.
The government agency said in its quarterly financial report that the arrears rate had declined to 0.32 percent as of the end of June, down from 0.35 percent both at the end of 2012 and at the end of March.
Canada did not suffer the housing crisis that triggered the 2007-2009 recession in the United States, and its government has taken steps to try to cool the Canadian market without causing a crash.

The total amount of insurance CMHC had on loans was C$562.1 billion ($535.3 billion) at the end of June, just C$500 million less than the end of March and comfortably under the C$600 billion ceiling set by the government.

It is vital to understand that in Canada, Mortgage Interest is not deductable [from your income taxes] and we are a full recourse* Mortgage country. *Full Recourse means the BANK will sue you for both the house and your signature (future earnings) .
What are the recent number for Mortgage Delinquency in the United States?

2 comments:

  1. http://blogs.wsj.com/developments/2013/09/23/eight-takeaways-on-mortgages-after-the-housing-bust/tab/comments/#newest

    This was a good article

    ReplyDelete
  2. I get my info from The National Real Estate Post when the guys get their information.

    ReplyDelete