Canada's Housing Future Exceeds Expectations According to Mortgage Insurer
The country’s largest private mortgage insurer reported its second quarter results on Tuesday, including one key statistic that might leave housing skeptics second-guessing themselves.
Genworth MI Canada (MIC.TO 38.63 -0.91 -2.3%) posted its lowest loss ratio in seven years—12 percent—meaning that the insurer only paid $12,000 in claims for every $100,000 in premiums that it charged. In other words, this exceptionally low metric means fewer borrowers are defaulting on their mortgages and contradicts anyone who sees a U.S.-style housing crash in Canada’s future.
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