Mortgage debt in Canada rises 5% in May, mortgage insurer says

More Canadians are using mortgage debt as a source of income, but the mortgage insurance company that covers them says it’s getting fewer applications.

The Canadian Mortgage and Housing Corp. said Wednesday it has received 6,500 applications for mortgage insurance, up from 6,400 in April.

The agency expects that number to continue rising.

Mortgage insurance is the main source of funding for many Canadians, including people who don’t have mortgages.

The federal government, in a bid to curb mortgage defaults, has made it easier for people to refinance their mortgages, offering a maximum down payment of about 15% of the home’s value.

It also offers loans at lower interest rates than in the past, and is offering to make more loans available to people who already have mortgages but have difficulty refinance.