OTTAWA, May 30, 2013 — Canada Mortgage and Housing Corporation (CMHC) released today its results for the first quarter of 2013.
At the end of the first quarter of 2013, CMHC’s total insurance-in-force was $562.6 billion; $3.5 billion lower than the insurance-in-force at year-end 2012.
CMHC expects mortgage repayments to continue in the range of approximately $60 to $65 billion per year. These repayments off-set future increases to CMHC‘s insurance-in-force, resulting from new business being written.
CMHC’s mortgage insurance portfolio is strong with an overall arrears rate at March 31, 2013 of 0.35%, unchanged from year-end 2012. The average credit score in CMHC’s high-ratio insured homeowner portfolio is 726. The high average credit score demonstrates a strong ability among homebuyers with CMHC-insured mortgages to manage their debts. The average amortization period at the time of mortgage approval for all CMHC-insured homeowner and multi-unit residential loans has remained stable at 25 years.
Losses on Claims were $21 million lower in Q1 2013 compared to the same quarter in 2012. The lower losses are the result of declining claim volumes (14% lower than those received in Q1 2012).
For the three months ended March 31, 2013, CMHC’s net income (after taxes) was $378 million, a decrease of 15% ($69 million) when compared to the same period in 2012. Over the last decade, CMHC has contributed more than $17 billion towards improving the Government of Canada’s fiscal position through both its income taxes and net income. Of the $17 billion, CMHC’s insurance business has contributed more than $15 billion.
Total insured volumes (units) for the three months ended March 31, 2013 were approximately 54% lower than the same period in 2012. The decline can mainly be attributed to lower portfolio insurance volumes, lower levels of housing starts and resale activity, and the reduced size of the high ratio homeowner mortgage loan insurance market as a result of the new mortgage insurance parameters that took effect in July 2012. The parameter changes eliminated high ratio refinancing.
As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable housing solutions that will continue to create vibrant and healthy communities and cities across the country.