If we thought credit card debt was always a difficult issue amongst Canadians, there is now an even bigger problem: mortgage debt. Claims suggest homebuyers have pushed new mortgages to unprecedented levels, according to a new report from Equifax Canada. “Much of the growth in consumer debt, which stands at $2.08 trillion, up 4.78% from Q1…
Last week, it was announced again that both insured and uninsured mortgage borrowers will be subject to a stricter stress test when qualifying for their mortgage. The Office of the Superintendent of Financial Institutions (OSFI) confirmed that it will move ahead with its stress test changes first announced last month, which will apply to uninsured mortgages…
Homebuyers and homeowners rushed to join the party when the pandemic produced some of the cheapest mortgages in Canadian history. Extremely low interest rates, fewer home listings and high demand fuelled sales. As a result, over half a million homes homes changed hands in 2020, according to the Canadian Real Estate Association. But now, 5…
House prices around the country will continue going upwards this year, outpacing inflation after hitting record highs in 2020, according to a Reuters poll of property market analysts who said the risk of a COVID-19 resurgence derailing activity was low. Intermittent lockdown restrictions after a second wave of infections hit the country are threatening expectations…
Spending more time at home has led to Canadians taking on more and more mortgage debt despite the ongoing pandemic. Borrowers have tried to keep up with a housing market that took off in the latter half of 2020 and has yet to slow down. Statistics Canada recently said that household mortgage debt increased 7.4%…
At the end of 2020, the CREA released its latest resale housing market forecast, which revealed that — despite turbulent spring months — homebuyers are on track to set a record for the last calendar yesr, with some 544,413 homes projected to change hands by December 31, an 11.1% increase from 2019 levels. Subsequently, the national…
Canada’s housing market was full of surprises this year. The average house price has risen 17% despite numerous predictions that prices would decline. Near the beginning of the pandemic, the CMHC predicted that house prices would decline 9% to 18%. However, exactly the opposite has actually happened! The experts may have been proven wrong, or…
The mortgage deferral rate is on the decline according to the CMHC. In their quarterly financial report released November 27, the CMHC reported it had deferrals on 5% of its entire portfolio of insured mortgages since September 30. That’s a decline from approximately 8% in August. The active mortgage deferral rates as of September 30 was 4%…
There may be uncertainty in the future for our country’s real estate market, but young Canadians are undeterred and remain optimistic about the prospect of buying a home. Nearly 1 in 5 Canadians aged 18-34 say the pandemic has accelerated their plans to purchase a home or investment property, according to a recent Scotiabank survey. The…
The Bank of Canada is ending one of its emergency measures to stimulate the COVID-19 economy, leading to speculation that the era of record-low mortgage rates could be ending, too. What’s more likely, mortgage experts say, is that the central bank’s decision to stop buying Canada Mortgage Bonds on Oct. 26 will usher in a…
