credit and debt
A LITTLE MORE DELINQUENT THAN A YEAR AGO Mortgage arrears rates remain exceptionally low in BC. This is good news, though recent increases should give pause.
British Columbia’s strong labour market, featuring robust job and wage growth, and very low unemployment, has many beneficial knock-on effects, not the least of which is a stable housing ownership market across the province. In each of BC’s four metro areas (Vancouver, Victoria, Abbotsford-Mission, and Kelowna), the mortgage arrears rate is most recently less than half of what it was 4 years ago. Currently, Abbotsford-Mission boasts the lowest mortgage delinquency rate in
the province at 0.10% (that means 1 out of 1,000 mortgages is three or more months in arrears), followed by Vancouver (0.12%), Victoria (0.13%), and Kelowna (0.22%). While the arrears rate has increased in three of BC's four metros in the past year, it may once again be set to fall due to the increased availability of cheaper credit. In any event, maintaining a low delinquency rate is vital for the province’s broader economic prospects.
THREE CHEERS FOR LOW MORTGAGE ARREARS
ABBOTSFORD MISSION
VANCOUVER
VICTORIA
KELOWNA
0.29%
0.35%
0.57%
0.54%
2015 Q1
0.23%
0.29%
0.35%
0.38%
2016 Q1
0.14%
0.22%
0.23%
0.33%
2017 Q1
0.11%
0.12%
0.14%
0.19%
2018 Q1
0.12%
0.13%
0.10%
0.22%
2019 Q1
-21%
-17%
-39%
-30%
2015-16 Q1
-39%
-24%
-34%
-13%
2016-17 Q1
-21%
-45%
-39%
-42%
2017-18 Q1
9%
8%
-29%
16%
2018-19 Q1
SOURCE: CANADA MORTGAGE & HOUSING CORPORATION
DATA: MORTGAGE DELINQUENCY RATE, BC CENSUS METROPOLITAN AREAS
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