CMHC’s latest national edition of the Mortgage and Consumer Credit Trends report covers the second quarter of 2019. Here are a few facts:
- indebtedness is higher than one year ago, increasing the vulnerability of Canadians to financial difficulties
- the average outstanding balance of newly originated mortgages declined, reversing a trend of growth
- the new mortgages share of all loans moved higher into 2019. This mirrors the national trend in home sales, which fell in 2018, and has risen in 2019
- only HELOCs and mortgages showed considerable growth in monthly obligations on average
Mortgage holders tend to have a higher credit score the non-mortgage holders
Across the board since the beginning of 2019 to the second quarter, credit scores for consumers with and without a mortgage are rising. The credit scores were reported highest for consumers with a mortgage. Over the last 4 years, the average credit scores for consumers without a mortgage have worsened slightly, indicating that these consumers are having a harder time paying off debt than those with a mortgage.
Loan balances rise in Montreal and Toronto due to house price growth in those CMAs
In the second quarter of 2019, the average outstanding loan balance for new mortgages rose in Montreal and Toronto as a reflection of average price growth. It declined in Vancouver compared to last year. Non-mortgage debt has also been rising by region over the last four years, with slightly larger monthly obligations for Montreal.
Despite the large size of millennials entering the market, the share of mortgages held by people aged 55+ grew, as fewer young adult consumers were mortgage holders.
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