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PUNCTUAL PAYMENTS
Rising and high inflation and interest rates have not knocked borrowers off track from repaying their mortgages.
Housing affordability is an oft-discussed subject, usually in the context of how affordable homes are to purchase. But amid a rapidly changing environment, one where inflation is sky-high, more homeowners have variable rate mortgages, those rates are rising, and home values are softening, it's worth checking in on affordability for current homeowners. For that we can turn to the mortgage arrears rate, that is the share of mortgages that are
behind on payments by 90 days or more. While this data lags (as it takes three months to show up in the stats), we can see a clear trend of falling arrears, both in Canada and here in British Columbia. BC’s rate of 0.11%, ranks second in the country, well below the national rate of 0.16%. So while household budgets are being stretched this year, we can see that homeowners have—to this point—been staying on top of their mortgage payments.
IN BC, 11 OUT OF 10,000 MORTGAGE HOLDERS ARE LATE. THAT’S PRETTY GOOD!
0.6%
0.51%
0.5%
0.4%
0.35%
0.35%
0.3%
2022 national rate 0.16% from 0.19% in 2021
0.23%
0.23%
0.21%
0.2%
0.15% 0.15%
0.11%
0.1%
0.07%
0.0%
ON
BC
PEI
QC
MB
NB
NS
NL
AB
SK
Q
Q
DATA: SHARE OF MORTGAGES 3+ MONTHS IN ARREARS, QUARTERLY
SOURCE: CMHC & EQUIFAX CANADA
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