New trends have become apparent
Canadian outstanding mortgage debt stood at $1.92 trillion in October, after reaching 96.5% of GDP the month prior, according to data from the Bank of Canada.
However, the same data showed a new trend emerging in the annual increases in Canada’s mortgage debt.
“Canadians are borrowing at one of the fastest rates in decades, but growth is slowing. October is the second consecutive month to see the annual growth rate taper,” Better Dwelling said in its analysis of the BoC figures.
From this year’s peak of 10.5% seen in August, annual growth ticked down to 10.4% in September and then 10.2% in October, the central bank said.
Read more: How do mortgages affect the national household debt-to-income ratio?
The monthly net increase in outstanding mortgages has also been falling from this year’s peak of $25.5 billion in June, moderating to $19 billion in July, $17.8 billion in August, and $13.8 billion in September – a level approximately $100 million less than the increase seen a year prior, Better Dwelling said.
“As of October, the net increase in mortgage debt fell to $11.5 billion, down $2.5 billion compared to a year before. Price growth is higher, and inventory is stable, but credit is slowing down,” Better Dwelling said. “The monthly net increase in 2021 is still 49% higher than in 2019. However, it’s still a fifth smaller than last year, when cheap debt first hit the market.”
