New CMHC Report Shows Large Mortgages Have Lower Delinquency Rates
Matrix Mortgage Global: New CMHC Report Shows Large Mortgages Have Lower Delinquency Rates
A recent report by the Canadian Mortgage and Housing Corporation (CMHC) has found that while large mortgages are on the rise, the delinquency rate for these is actually quite low. Looking at credit imbalances across the country, the heaviest imbalances have been in the Greater Toronto Area. Compared to this time last year, however, the imbalances are easing and the number of vulnerable mortgage holders has decreased by approximately fifty percent.
The CMHC report found that the greatest delinquency rates tended to be among those mortgage holders with lower balances. It is speculated that the reason for this is that low-income earners with less predictable or vulnerable earnings tend to buy less expensive homes, but are also more likely to default. More wealthy Canadians on the other hand, even though they take on considerably more debt with their mortgage have predictable steady incomes and are less likely to default.
Despite the current improvement in the mortgage market, however, some experts are warning that a crisis could be on the horizon. With massive consumer debt plaguing many Canadian households, some worry that this is unsustainable.
For most Canadians, buying a home will be the largest purchase that they make in their lifetime and having good money management skills will be crucial to ensuring that they can pay off their mortgage and maintain a good credit rating.
Unfortunately, many new homeowners may not have sufficient financial literacy skills. This is one area where a professional mortgage broker can provide a lot of value. Having better information when you first apply for your mortgage may protect you from having to default in the future.
By working with a trained mortgage advisor, it can not only help you to get the best rates and terms for your specific situation, but your mortgage advisor can also help you to understand how your mortgage works in order to help set you up for a better financial future.
Furthermore, if your high-interest consumer debt has become unmanageable, a mortgage broker can show you how to use the equity in your home to consolidate debt, lower your interest payments and to ultimately pay off your debt much faster.
If you would like to speak to a mortgage broker about any of these issues, contact Matrix Mortgage Global today at 1-877-371-5293.