credit and debt
PRUDENCE IN A PANDEMIC
Thanks to generous government fiscal supports, supportive monetary policy, and the introduction of a mortgage deferral program, mortgage arrears rates across the country have been plunging.
After a period of uncertainty for homeowners at the beginning of the pandemic, Canada’s mortgage markets settled in the second half of 2020. When social-distancing restrictions were put into place in March 2020, leading to the closure of workplaces everywhere and the total shutdown of entire sectors, concerns on the part of homeowners abounded: would they still be able to afford their monthly payments?
Well, thanks to rapidly-implemented and significant fiscal supports and an unprecedented mortgage deferral program (and, quite frankly, the fact that the pandemic did not negatively impact the sectors homeowners worked in as much as those of young people and renters), mortgage arrears rates actually began to fall. In Metro Vancouver, the arrears rate currently sits at 0.13%, below that of Montreal and Canada as a whole, though slightly above Toronto’s 0.09%. For the foreseeable future, rising arrears rates are unlikely.
HEALTHIER MORTGAGE MARKETS ARE HERE
0.4%
0.3%
0.22%
0.2%
0.13% 0.16%
0.1%
0.09%
0.0%
Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4 Q1 Q2
VANCOUVER
TORONTO
MONTREAL
CANADA
DATA: PROPORTION OF MORTGAGE HOLDERS WHO ARE THREE OR MORE MONTHS IN ARREARS
SOURCE: CANADA MORTGAGE & HOUSING CORPORATION; EQUIFAX
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