CMHC Releases Latest Available Data On Trends In The Residential Mortgage Industry

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Canada Mortgage and Housing Corporation just released its Fall 2022 edition of the Residential Mortgage Industry Report. This latest report provides insights into the evolving mortgage industry landscape and mortgage market trends using the most recent available data (as of Q2 and Q3 2022).

In today’s Residential Mortgage Industry Report CMHC finds the following:

Mortgage market trends

  • Mortgage growth slowed down as interest rates hiked in the second quarter of 2022.
  • Since June, mortgage consumers are increasingly turning back to fixed rates as interest rates rapidly increase and the discount on variable interest rates vanishes.
  • Declining ratios of mortgage loan approvals to applications in the first two quarters of 2022 show it is increasingly difficult for potential borrowers to get qualified for loans subject to the stress test.
  • At the end of the second quarter, the share of mortgages in arrears (i.e. delinquent for 90 days or more) have continued to trend downwards across all types of lenders.

Housing Finance Research at-a-glance

  • In the third quarter of 2022, consumers without a mortgage registered notable delinquency rate increases in auto loans and credit cards.
  • Mortgage lending growth by alternative lenders outpaced conventional lenders in the second quarter of 2022. Their portfolio metrics indicated a decreasing risk profile.
  • Based on data as of Q3 2022, mortgage borrowers in the alternative lending space are more likely to renew their loans as it becomes harder to qualify with traditional lenders.

Please read the full analysis, Residential Mortgage Industry Report – Fall 2022 Edition.


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