“At the time of the recession in 2008, it stood at about 80% of the size of the economy in 2010, it rose to 95%, and by 2021 debt exceeded its size,” he said. Meanwhile, variable-rate mortgages are also dropping to less than 20% of new mortgages.ĬMHC Deputy Chief Economist Aled ab Iorwerth found that household debt in Canada has been rising “inexorably” compared to other countries. CMHC says many consumers are opting for fixed two- to three-year rates. For example, they found that mortgage borrowers choose shorter-term fixed-rate mortgages, hoping that interest rates will take a nosedive in the future.įixed-rate five-year mortgages have also fallen to less than 15% of new mortgages. In their research, the experts at CMHC noted emerging trends in the Canadian real estate market concerning mortgage and debt. “Increasing delinquencies for these credit products indicate a larger number of consumers are having difficulties with their debt payments.” Mortgage trends at a glance “Although mortgages in arrears remain low, they are a lagged indicator, and in challenging financial situations, consumers will typically be delinquent on credit cards, lines of credit, or auto loans before mortgages,” said Bourassa-Ochoa. Tania Bourassa-Ochoa, senior specialist of housing research for CMHC, said that these trends raise questions around housing affordability - notably, the ability of Canadian households to make their monthly debt payments. In 2021, household debt exceeded the size of the economy, with three quarters of the debt tied up in #mortgages. Mortgages were deemed one of the central culprits in this trend.Ĭanadian household #debt has been rising for years – and is now the highest among G7 countries. Earlier this week, CMHC released an analysis revealing that Canada now has the highest level of household debt among G7 countries, making the economy more vulnerable to any global economic crisis, according to a new report.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |