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Mortgage debt hits $2 trillion

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.

You can read more on the matter here.

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Desalination ain’t cheap.

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