We explore the composition of new mortgage activity, mortgage investment corporation segment and trends in mortgage arrears. Find all the details in our summer 2021 Residential Mortgage Industry Dashboard.
Uninsured mortgages make up the core of new mortgage activity
After three quarters of strong growth, the value of outstanding residential mortgages issued by chartered banks continued to grow. Growth for the first quarter of 2021 was a slightly lower. Overall, chartered banks added $100.3 billion worth of residential mortgages to their portfolios.
New mortgage flows increased for all types of transactions compared to the same quarter in the previous year (figure 1). The escalation in uninsured mortgages contributed to over 90% of gross increases in mortgage loans.
Compared to the same period a year previous, chartered banks recorded an increase of:
- 77.6% in new uninsured mortgages originated for property purchases
- 49.2% in same-lender refinancing
- 35.6% in same-lender renewals
- 43.8% in switches
Insured mortgages also grew slightly, mostly driven by individually insured mortgage loans (figure 2).