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Our latest release of Mortgage and Consumer Credit Trends data tables cover the third quarter of 2020. Here are some key highlights from the data:
Mortgage delinquency rates are steady
- Delinquency rates are steady across Canada at 0.3%. Montreal continues to trend under the national average. Toronto and Vancouver maintain a flat rate, much lower than national average, at 0.12% and 0.16%, respectively.
- Delinquency rates are stable across age cohorts with the highest delinquency rates in the 65 and over age group (0.37%), while the 25 – 34 age group — usually first time homebuyers being the lowest (0.25%).
- HELOCs and Lines of Credit delinquency rates continue to be relatively flat and low at 0.17% and 0.62% respectively. The rates for credit cards decreased by 27 basis points to 1.35% and auto loans decreased 20 basis points to 1.89%.
Credit scores remain high
- The average credit scores of non mortgage holders (752), mortgage holders (764) and new mortgage originators (753) remained relatively unchanged and high.
- The share of mortgages held by consumers with high credit scores (700+) continues to trend higher. It represents 87.48% of outstanding loans, as well as 85.76% of new mortgage loans.
- Compared to the previous year, 30.81% of mortgage holders increased their credit score, while 28.49% of their non-mortgage holding counterparts saw their score move higher.
Negative year-over-year growth in outstanding balance of all credit types
- Compared to Q3 2019, non mortgage holders experienced a negative growth in all credit types, most notably in the LOC (-8.11%) and credit card (-11.42%) categories.
- Similarly, mortgage holders also experienced a decline across all credit types with the largest decreased seen in the same categories of LOC (-9.31%) and credit card (-11.8%).
Effects of the COVID-19 pandemic
- The COVID-19 pandemic has had significant social and economic impacts in 2020 throughout all of Canada. We have observed unprecedented declines in employment, pressures on households and increased financial stresses.
- CMHC continues to monitor the economic impacts associated with the severity and duration of COVID-19, as this pandemic poses a major risk to housing and financial markets.
