A particular age group is seeing its market influence grow steadily
The share of mortgages held by older Canadians continues to rise, according to data from Equifax.
This was particularly evident in Q3 2021, which showed Canadians in the 35-44 age bracket accounting for 26% of mortgage borrowers (nearly unchanged from 2018), and 30% of outstanding mortgage debt. Those in the 45-54 age range represented 25% of mortgages (unchanged from 2020), and 26% of outstanding mortgage debt, Equifax said.
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Middle-aged Canadians in the 55-64 age bracket represented 20% of mortgages (down from 21% in 2020) and 17% of outstanding mortgage debt. Boomers aged 65 and older were the only group to see a larger share of mortgages in Q3 2021, accounting for 12% of mortgages (up from 11% in 2018) and 8% of outstanding mortgage debt, Equifax said.
Canada’s overall outstanding mortgage debt was at $1.92 trillion in October, after reaching 96.5% of GDP the month prior, according to the Bank of Canada.
“Millennial-led households maintained their share of mortgages, but a larger share of debt. Senior-led households increased their share of mortgages, but held a smaller share of debt,” Better Dwelling said in its analysis of the Equifax figures. “Households aren’t just paying off their mortgages, but adding more mortgages to their holdings. Most people have trouble walking away from the table after winning a jackpot, and try their luck at double or nothing.”
