Total residential mortgage debt in Canada hit $2.16 trillion in February 2024, a 3.4% increase, year-over-year, and the slowest growth rate in 23 years, according to a report from Canada Mortgage and Housing Corporation (CMHC). The agency noted higher mortgage costs, uncertainty about the Bank of Canada’s overnight rate increases or decreases resulted in lower home sales and prices in the country in the second half of 2023. CMHC believes the slowdown in mortgage growth could be reversed in the second half of 2024, with home sales and prices increasing, coupled with expected rate decreases by the Bank of Canada. “In a context where debt levels have never been so elevated and households are showing increasing warning signs of financial struggle, household debt vulnerability is becoming a primary area of concern,” said CMHC deputy chief economist Tania Bourassa-Ochoa in a press release. “As homeowners find it more difficult to manage their monthly budgets, policymakers and the financial sector are on high alert when considering risks to the financial industry and the economy.” Since the Bank of Canada began raising its rate, from .25% in March 2020 to 5% where it is today, CMHC said borrowers have opted for shorter-term, fixed-rate mortgages over traditional five-year fixed terms as they remain uncertain of the short- and medium-term mortgage rate outlook, even though lenders are offered discounts on five-year, fixed-rate mortgages in the first two months of this year. “Lenders are foreseeing potential rate cuts by the (Bank of Canada) occurring sooner than they anticipated last year and are seeking to lock in mortgages at relatively high rates,” the report said, adding terms between three years and five years were the most popular choice, making up almost 40% of newly extended mortgages in February 2024. Variable-rate mortgages accounted for 15% of all lending for newly extended mortgages. CMHC said the national mortgage delinquency rate hit 0.17% in the fourth quarter of 2023, near historic lows, but the first upwards trend since the beginning of the pandemic. Not all homeowners in Canada have a mortgage, according to a report from Casivoo.com Using StatCan data, Casivoo estimates an average of 32% Canadian households are mortgage free, with the highest percentages in Ontario cities.. Canadian Mortgage Professional (CMP) says Casivoo found 47% of homeowners in Thunder Bay ON, were mortgage-free, the highest number of any city in Canada. “Casivoo said it had analyzed 2021 Statistics Canada data on the number of private households in the country and their status, including owners without mortgages, those who are living under subsidized housing, renters, and owners with mortgages,” reports CMP. “Based on the statistics, out of 37,700 private households in the Thunder Bay area, 17,745 have fully paid their mortgages.” Peterborough ON was second at 45.2%, with St. Catharine-Niagara taking third with 43.5%. In fourth is Victoria BC at 43.2%, with Windsor On rounding put the top five at 42.8% Spots six through 10 are: Belleville-Quinte West, ON (42.3%); Kingston, ON and Nanaimo, BC tied at 42%; Kelowna, BC with 41.3%; Greater Sudbury, ON at 41.1%, and; Trois-Rivieres, QC 40.9% of private households mortgage-free. Other areas with 40% or more of mortgage-free households include Vancouver BC (40.8%); Fredericton NB (40.6%); Saint John NB (40.4%) and Kamloops BC (40%). Neither CMP nor Casivoo announced ratings for most cities in the Prairies, alluding to much lower rates of mortgage-free households, due to younger populations and high immigration levels, with a Cadivoo spokesperson saying, “It's interesting to see that a number of areas within Ontario dominate the top 10 rankings.” “The locations in the lead ranking are perhaps more attractive to older homeowners who are more likely to have paid off their mortgage, hence why we are seeing the higher rates. It’ll be interesting to see if new regions enter the top ten in the future.”
Total residential mortgage debt in Canada hit $2.16 trillion in February 2024, a 3.4% increase, year-over-year, and the slowest growth rate in 23 years, according to a report from Canada Mortgage and Housing Corporation (CMHC). The agency noted higher mortgage costs, uncertainty about the Bank of Canada’s overnight rate increases or decreases resulted in lower home sales and prices in the country in the second half of 2023. CMHC believes the slowdown in mortgage growth could be reversed in the second half of 2024, with home sales and prices increasing, coupled with expected rate decreases by the Bank of Canada. “In a context where debt levels have never been so elevated and households are showing increasing warning signs of financial struggle, household debt vulnerability is becoming a primary area of concern,” said CMHC deputy chief economist Tania Bourassa-Ochoa in a press release. “As homeowners find it more difficult to manage their monthly budgets, policymakers and the financial sector are on high alert when considering risks to the financial industry and the economy.” Since the Bank of Canada began raising its rate, from .25% in March 2020 to 5% where it is today, CMHC said borrowers have opted for shorter-term, fixed-rate mortgages over traditional five-year fixed terms as they remain uncertain of the short- and medium-term mortgage rate outlook, even though lenders are offered discounts on five-year, fixed-rate mortgages in the first two months of this year. “Lenders are foreseeing potential rate cuts by the (Bank of Canada) occurring sooner than they anticipated last year and are seeking to lock in mortgages at relatively high rates,” the report said, adding terms between three years and five years were the most popular choice, making up almost 40% of newly extended mortgages in February 2024. Variable-rate mortgages accounted for 15% of all lending for newly extended mortgages. CMHC said the national mortgage delinquency rate hit 0.17% in the fourth quarter of 2023, near historic lows, but the first upwards trend since the beginning of the pandemic. Not all homeowners in Canada have a mortgage, according to a report from Casivoo.com Using StatCan data, Casivoo estimates an average of 32% Canadian households are mortgage free, with the highest percentages in Ontario cities.. Canadian Mortgage Professional (CMP) says Casivoo found 47% of homeowners in Thunder Bay ON, were mortgage-free, the highest number of any city in Canada. “Casivoo said it had analyzed 2021 Statistics Canada data on the number of private households in the country and their status, including owners without mortgages, those who are living under subsidized housing, renters, and owners with mortgages,” reports CMP. “Based on the statistics, out of 37,700 private households in the Thunder Bay area, 17,745 have fully paid their mortgages.” Peterborough ON was second at 45.2%, with St. Catharine-Niagara taking third with 43.5%. In fourth is Victoria BC at 43.2%, with Windsor On rounding put the top five at 42.8% Spots six through 10 are: Belleville-Quinte West, ON (42.3%); Kingston, ON and Nanaimo, BC tied at 42%; Kelowna, BC with 41.3%; Greater Sudbury, ON at 41.1%, and; Trois-Rivieres, QC 40.9% of private households mortgage-free. Other areas with 40% or more of mortgage-free households include Vancouver BC (40.8%); Fredericton NB (40.6%); Saint John NB (40.4%) and Kamloops BC (40%). Neither CMP nor Casivoo announced ratings for most cities in the Prairies, alluding to much lower rates of mortgage-free households, due to younger populations and high immigration levels, with a Cadivoo spokesperson saying, “It's interesting to see that a number of areas within Ontario dominate the top 10 rankings.” “The locations in the lead ranking are perhaps more attractive to older homeowners who are more likely to have paid off their mortgage, hence why we are seeing the higher rates. It’ll be interesting to see if new regions enter the top ten in the future.”
