In 2019, Canadian insolvencies reached the highest they have in a decade.
October 2019 was the highest monthly reading of personal insolvencies since September 2009.
Insolvencies are also up year-over-year. According to the Government of Canada, between Q3 of 2018 and Q3 of 2019, the number of insolvency filings increased by about 4,000.
As insolvency filings increase, it is even more important for lenders to stay vigilant. While not all insolvencies deal with mortgage debt, if a consumer cannot make their mortgage payments due to other expenses, it could signal trouble.
On the Purview blog, we are looking at ways to mitigate risk when evaluating the mortgage application and among your current portfolio. Read it here: https://www.purview.ca/canadian-consumer-insolvencies-increased-in-2019-what-this-means-for-lenders/