Source: Statistics Canada
The Canadian Residential Mortgage Landscape
The total residential mortgage debt in Canada (outstanding balance of the major private institutional lenders) increased from $0.42 trillion in 2000 to $1.51 trillion in July 2018, reflecting a compounded annual growth rate (“CAGR”) of 7.32%.
Residential Mortgage arrears are low in Ontario. Arrears dropped to just 0.10% in 2017 and continued at 0.10% in March 2018, less than half the national average of 0.25% in 2017 and 0.24% in March 2018. Steady growth in employment in Ontario has contributed to very low delinquency rates. The Ontario unemployment rate was 6.0% in August 2018, the lowest level since 2001.
1. Residential Mortgage Arrears are defined as Mortgages that are due past 30 days
5 year Interest Rates: Fixed and Variable
Interest rates in Canada continue to be at historic lows. Since 2005, mortgage rates as offered by most of the major prime mortgage lenders in Canada has been on a steady decline resulting in better affordability in home ownership costs for more consumers.
Bank of Canada Prime Rate
Since the financial crisis of 2008 the Bank of Canada Prime Rate dropped significantly in order to spur economic growth. It saw slight increases around 2011 and since then has remained historically very low with rates rising slightly in 2017 and remaining stable for the first half of 2018.