Monday, September 8, 2025

Latest

CMHC: Mortgage Debt in Canada Surpasses $2 Trillion Amid Economic Headwinds

According to the CMHC’s Residential Mortgage Industry Report, Canada’s residential mortgage debt rose by 6% to $2.08 trillion in January 2023. Although this marked an increase, the growth rate was slower than in prior years due to inflation, surging interest rates, and a cooling housing market, which collectively dented consumer confidence and subsequently sent potential homebuyers to the sidelines.

Notwithstanding the moderated mortgage growth, Canadian households are grappling with record mortgage debt levels. CMHC Senior Specialist of Housing Research Tania Bourassa-Ochoa voiced concerns over the ability of Canadian households to make monthly debt payments in the face of elevated mortgage debt and the increasing cost of living.

“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. Increasing delinquencies for these credit products indicate a larger number of consumers are having difficulties with their debt payments,” she explained.

Reacting to the escalating interest rates, consumers are opting for strategies to lower their monthly debt servicing costs. A notable shift is towards shorter-term fixed-rate mortgages in anticipation of declining interest rates. The share of fixed-rate 5-year mortgages fell below 15% of new mortgages while variable-rate mortgages dropped under 20%.

Furthermore, the number of borrowers applying for refinancing plunged by 32% due to the higher cost of debt. More borrowers are also selecting longer amortization periods, which lowers short-term mortgage payments but extends the repayment timeframe.

Information for this briefing was found via the CMHC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

ESGold Outlines $24.3 Million NPV For Tailings Reprocessing Project

Related News

Ottawa Relaxes Foreign Home Buyers Rules After Loosely Banning It

Only months after the new laws went into effect, the Canadian government is removing some...

Wednesday, March 29, 2023, 12:59:00 PM

Canada Addresses Real Estate Crisis By… Banning Foreign Ownership?

The Canada Mortgage and Housing Corporation has issued regulations regarding the restriction on foreign homebuyers...

Thursday, December 22, 2022, 10:31:07 AM

Canada Housing Agency Abandons 2004 Affordability Target

Canada’s national housing agency is abandoning its goal to restore housing affordability to 2004 levels,...

Monday, June 23, 2025, 02:15:00 PM

Mattamy Homes Buyers Protest For Losing Their “Investment”

Buyers of pre-construction houses from Mattamy Homes protested at the homebuilder’s Dundas Street West sales...

Tuesday, February 7, 2023, 11:57:20 AM

OSFI Sticks With Loan-To-Income, Drops Debt-To-Income On Mortgage Underwriting Rules Overhaul

Canada’s primary banking regulator has decided to shelve certain critical proposals designed to strike a...

Wednesday, October 18, 2023, 10:09:26 AM