(OTTAWA) Residential mortgage debt for Canadians rose 9 per cent last year from a year earlier, recording its fastest pace of growth since 2008, the Canada Mortgage and Housing Corporation said Wednesday ( CMHC).
Posted at 1:23 p.m.
In its latest Mortgage Trends Report, the agency said growth was fueled by new uninsured mortgages for property purchases and refinances, which saw “substantial” increases.
Banks saw a 43% increase in new mortgages and a 22% increase in refinances compared to 2020, resulting in a $400 billion increase in residential mortgages on their balance sheets, while credit unions added 54 billion to their wallets.
CMHC says variable rate mortgages have been increasingly favored over the past year as discounts to fixed interest rates have increased. Variable rate loans accounted for 53% of new mortgage borrowing in the second half, compared to 34% in the first half.
The Bank of Canada has warned, however, that those who have recently taken out variable rate mortgages, particularly those who have stretched their financial situation to the limit to buy a home in the boiling market, could see significant increases in their monthly payments. at the time of renewal.
CMHC says the buoyant housing market last year helped drive down delinquent mortgages, which fell for all types of lenders.