credit and debt
INDEBTED TO OUR MOST POPULAR CITIES
Mortgage debt has grown substantially over the past few years alongside rising home prices—and unsurprisingly markets that have the most debt are ones where prices are highest.
Much of the discussion around mortgage debt and affordability in real estate has centred around Canada’s two most expensive markets: Vancouver and Toronto. And while the story on mortgage debt and home equity line of credit extends beyond those two markets, it doesn’t stray that far geographically speaking. Canada’s two most expensive provinces account for the highest per capita mortgage and HELOC debt for owned households with a mortgage. And while British Columbia leads the way, with three of the top five most indebted markets, Ontario is right behind.
In fact, those two provinces account for the 11 highest per capita debt loads in the nation. Here in Metro Vancouver, unsurprisingly we have the most debt per owned household with a mortgage, with an average of $566,000, a full 12% more than the next highest market, Toronto. We’ll discuss later on the amount of mortgage-free equity that’s held in respective markets, but for those first-time or move-up buyers getting into the market, a significant amount of debt is needed to participate in this market.
PROPORTIONALLY, DEBTS ARE THE MOST ON THE WEST COAST
$600,000
$565,755
$500,000
$400,000
$300,000
$200,000
$100,000
$0
DATA: OUTSTANDING MORTGAGE & HELOC DEBT PER OWNER HOUSEHOLD WITH A MORTGAGE, LARGE METRO AREAS IN CANADA
SOURCE: EQUIFAX, STATISTICS CANADA (2021 CENSUS)
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