credit and debt
RISING PAYMENTS ASIDE, STABILITY IN CANADA’S MORTGAGE MARKET PRESIDES They may not be sexy, but Canada’s latest mortgage market indicators appear sustainable.
Compared to the recent past, each of Canada’s headline mortgage metrics has abated in the most recent year (that’s a good thing). For starters, outstanding mortgage debt held by Canadians, while increasing by 3.7% between Q2 2018 and Q2 2019, grew at a significantly slower pace than in years past, when it increased by 6.3% (in 2015-16) and by a further 6.9% (in 2016-17), though it was up slightly from last year’s 2.6%. Some of this is predicated on slowing growth in the number of active mortgages, most recently having grown by 2.0% year-over-year
after expanding by 3.5% and by 2.9% in 2015-16 and 2016-17, respectively. Finally, the average outstanding balance per mortgage rose by 2.5% last year compared to the previous year’s 3.7%, while the average scheduled payment grew by 4.0% (versus 4.1% in the previous year). For now these figures appear to be sustainable, with continued low rates and moderate economic growth pointing to more of the same through the balance of 2019 and into 2020.
WAKE UP, YOU’RE SNORING: THESE MORTGAGE TRENDS AREN’T BORING
AVERAGE OUTSTANDING BALANCE PER MORTGAGE
OUTSTANDING MORTGAGE DEBT MILLIONS
NUMBER OF ACTIVE MORTGAGES S
AVERAGE SCHEDULED PAYMENTCONSUMER
$1,295,524
5,542
$182,300
$1,156
2015 Q2
$1,377,486
5,734
$190,700
$1,181
2016 Q2
$1,472,231
5,901
$198,690
$1,210
2017 Q2
$1,510,376
5,980
$205,980
$1,260
2018 Q2
$1,566,978
6,101
$211,130
$1,310
2019 Q2
6.3%
3.5%
4.6%
2.2%
2015-16 Q2
6.9%
2.9%
4.2%
2.4%
2016-17 Q2
2.6%
1.3%
3.7%
4.1%
2017-18 Q2
3.7%
2.0%
2.5%
4.0%
2018-19 Q2
SOURCE: MORTGAGE & CONSUMER CREDIT TRENDS, CANADA MORTGAGE & HOUSING CORPORATION DATA: CANADA
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