The Bankwatch

Tracking the consumer evolution of financial services

Canadian Residential Mortgage Market – Boring but Effective | IMF

A new working paper from the IMF reviews the Canadian mortgage market, and compares to the US.  There are striking differences, which they characterise as ‘boring but effective’.

Canadian Residential Mortgage Market | IMF working Paper {pdf – 18 pages]

Mortgage securitization is not as pervasive in Canada as in the United States, despite the shift toward bank origination and stronger government presence in the market. Only $267 billion (29 percent) of loans have been securitized, compared to about 60 percent of U.S. residential mortgages. $245 billion of these securitized mortgages are held by special purpose vehicles that issue mortgage-backed securities (MBSs) guaranteed by the government-owned Canada Mortgage and Housing Corporation (CMHC) under the National Housing Act.3 $142 billion of these NHA MBS were held by the Canada Housing Trust, funded by the CMHC-guaranteed Canada Mortgage Bonds (CMBs) (Figure 2).4 Only $24 billion were held by “private label” securitization vehicles.

Written by Colin Henderson

June 19, 2009 at 16:49

Posted in economy

One Response

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  1. In Canada, you cannot deduct mortgage interest.

    That seems to of critical importance!

    Adamchik

    June 19, 2009 at 18:53


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