daveto
Active Member
I've just read the following article.
http://americacanada.blogspot.com/2009/07/cmhc-and-our-government.html
Canada has apparently increased it's inforce mortgage credit by 18% since 2007.
http://1.bp.blogspot.com/_0YOsyi5Wb...00-h/Mortgage+Credit+Outstanding+(June09).Bmp
And 90% of that increase has been funded by securitizing the mortgages onto the open market (but fully backed by the CMHC).
The following chart suggests that equity in new mortgage originations has plummeted from 40%+ in 2003 to less than 10% in 2007.
http://2.bp.blogspot.com/_0YOsyi5WbLY/SmTDnZtunCI/AAAAAAAAAFs/Ry833Eeho_0/s1600-h/Home+Equity+5%.Bmp
Surely these details can't be right? I'm an admitted bear about Canadian real estate. But these charts left me speechless.
Does anyone have a more detailed understanding of this, and why maybe it isn't really as alarming as it seems to me?
http://americacanada.blogspot.com/2009/07/cmhc-and-our-government.html
Canada has apparently increased it's inforce mortgage credit by 18% since 2007.
http://1.bp.blogspot.com/_0YOsyi5Wb...00-h/Mortgage+Credit+Outstanding+(June09).Bmp
And 90% of that increase has been funded by securitizing the mortgages onto the open market (but fully backed by the CMHC).
The following chart suggests that equity in new mortgage originations has plummeted from 40%+ in 2003 to less than 10% in 2007.
http://2.bp.blogspot.com/_0YOsyi5WbLY/SmTDnZtunCI/AAAAAAAAAFs/Ry833Eeho_0/s1600-h/Home+Equity+5%.Bmp
Surely these details can't be right? I'm an admitted bear about Canadian real estate. But these charts left me speechless.
Does anyone have a more detailed understanding of this, and why maybe it isn't really as alarming as it seems to me?