OTTAWA, ONTARIO -- (Marketwired) -- 08/29/13 -- Canada Mortgage and Housing Corporation (CMHC) released today its results for the second quarter of 2013. At the end of the second quarter of 2013, CMHC's total insurance-in-force was $562 billion; $4 billion lower than the insurance-in-force at year end 2012.
For the six months ended June 30, 2013, CMHC's net income (after taxes) was $824 million, an increase of 6% ($49 million) when compared to the same period in 2012. This increase was mainly attributable to lower net claims. 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.
CMHC's mortgage insurance portfolio is strong with an overall arrears rate at June 30, 2013 of 0.32%, a 0.03 percentage point improvement compared to the 0.35% arrears rate reported in the first quarter of 2013, and a 0.02 percentage point improvement compared the same period last year.
The average credit score in CMHC's high-ratio insured homeowner portfolio is 727. The high average credit score demonstrates a strong ability among homebuyers with CMHC-insured mortgages to manage their debts.
Losses on Claims in the second quarter were $117 million, $51 million (30%) lower than the same quarter in 2012 and $72 million (22%) lower on a year-to-date basis. The lower losses are the result of declining claim volumes (15% lower than those received during the first six months of 2012).
Total insured volumes (units) for the three months ended June 30, 2013 were approximately 2% higher than the same period in 2012. On a year-to-date basis, total insured volumes were approximately 26% lower, which can mainly be attributed to lower portfolio insurance volumes, 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.
For year-to-date fiscal year 2013-14, CMHC invested $459 million on behalf of the Government of Canada in Housing Programs to improve the living conditions of Canadians in need by improving access to affordable, sound, suitable and sustainable housing, bringing the amount invested on a year-to-date basis to $1,032 million.
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.
For additional highlights please see attached backgrounder.
This release is also available at CMHC.ca/Newsroom. For more information, visit www.cmhc.ca or call 1-800-668-2642.
Follow CMHC on Twitter @CMHC_CA
Key Statistics - as of June 30, 2013.
-- CMHC continues to be the only mortgage loan insurer for large multi-unit residential properties including nursing and retirement homes. The Corporation's support for these forms of housing is important to the supply and maintenance of a range of housing options in Canada.-- CMHC is the primary insurer for housing in rural areas and smaller Canadian markets. The share of CMHC's total homeowner and rental business to address less-served markets was 47.5% in the first six months of 2013.-- Based on updated property values, the majority (76%) of CMHC-insured mortgages currently have loan-to-value ratios of 80% or less. The average equity in CMHC's insured high and low ratio homeowner loan portfolio remained stable at 45%.-- CMHC analysis shows that more than a third of CMHC-insured high ratio borrowers with fixed-rate mortgages are consistently ahead of their scheduled amortization by at least one mortgage payment per year. The figure rises to about three quarters for those who are ahead of their payment schedule by any amount.-- The average outstanding loan amount was $140,581, which is on par with the year end 2012 outstanding loan amount.-- CMHC applies OSFI rules, guidelines and regulations for private sector financial institutions in setting capital levels. Insurance available Capital is more than twice the minimum capital under OSFI guidelines.
Charles Sauriol, Media Relations