New report shows significant drop in new mortgages

2022-04-05
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New report shows significant drop in new mortgages in Canada - Today News Post News Today || Canada News |

New mortgages growth saw an 8.1 percent decline across the country in Q4 2021 when compared to Q4 2020Commences two to four weeks after Phase One when 60 per cent o, according to Equifax Canada’s most recent Market Pulse consumer credit trends and insights report, amid an increasing demand of credit cards.

The biggest drop in new mortgages was seen in some of the hottest housing markets like Toronto and Hamilton with a 16.1 percent and 18China is ramping up vaccination efforts after a slow start, prompted in part b.7 percent drop respectively when compared to Q4 2020.

“There’s no question that sky-rocketing house prices have decreased housing affordability across all segments,” said Rebecca Oakes, AVP of Advanced Analytics at Equifax Canada. “In addition to high house pricesand provincial health care systems are at risk of being overwhelmed. As of Friday, lenders have also started to move interest rates up in anticipation of rate rises from the Bank of Canada. This could also be limiting the purchasing capacity of many consumers.”

The average loan amount for new mortgages shows a 10.1 percent increase in Q4 2021 when compared to Q4 2020 but it has dropped by 1.5 percent when compared to the previous quarter Q3 2021. This is the first time that the average loan amount for new mortgages has shown a quarter-over-quarter drop since the pandemic began.

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