Our 2020 Annual Residential Mortgage Industry Report discusses the growth of overall mortgage debt in 2020 and the pandemic’s impact.
Mortgage debt accelerated in 2020 and into the pandemic lock down
The end of 2019 saw a surge in home sales and higher sales prices. This led to an increase in mortgage origination in the first three months of 2020, before the economic disturbances resulting from the COVID-19 pandemic.
Total outstanding mortgage debt continued to grow into April and May 2020 despite the pandemic-induced shutdown. This is partly due to the trend in sales finalized before the shutdown for which:
- closing dates were set into the spring months
- mortgages extended in the second quarter
Record level of mortgage consumers deferring their mortgage payments
In response to COVID-19, many financial institutions have offered relief to mortgage borrowers effected by the pandemic. This includes allowing borrowers to defer their mortgage payments.
According to the Canadian Bankers Association, more than 760,000 mortgage consumers either deferred their mortgage or skipped a payment.
Because of these deferred mortgage payments, plus the related additional fees and interest, we saw overall mortgage debt rise.
Despite growing mortgage debt, a good portion of mortgage holders continued to make their mortgage payments on time. Equifax Canada data shows the shares of mortgage loans for which payments were delinquent for 90 days or more was still low.
Some mortgage consumers also consolidated other credit into their mortgage as a way to delay their debt payments and minimize costs in fees and interest.
Mark your calendars for our September 15 Residential Mortgage Industry Report English webcast. Hear our experts discuss the annual report findings.
Emerging Trends in the Residential Mortgage Industry
Date: September 15, 2020
Start Time: 12 noon EST
Duration: 60 minutes
Speaker: Tania Bourassa-Ochoa (Senior Specialist, Housing Research)
About the Residential Mortgage Industry Report
The Residential Mortgage Industry report is an annual economic analysis of the residential mortgage industry in Canada. The report:
- provides a whole market view from origination to funding, covering insured and uninsured mortgages from all lender types
- consolidates information from a variety of sources to provide further insights into the evolving mortgage market
- provides insights into emerging trends in the Canadian residential mortgage industry
The annual report is complemented by a quarterly dashboard that provides updated data and highlights of market trends. The dashboard helps fill housing market data gaps by providing the latest trends and data in the mortgage industry.