Canada’s Mortgage Debt Grows At Fastest Pace Since 2008 Financial Crisis

Residential mortgage debt in Canada is growing at its fastest pace since the 2008 financial
crisis, according to Canada Mortgage and Housing Corp. (CMHC).

A new report from the federal housing agency shows that mortgage debt grew by 9% in 2021
and topped 10% at the start of this year before rising interest rates began to cool the market.

Banks in Canada saw a 43% increase in new mortgages and a 22% increase in refinances last
year, leading to $400 billion worth of additional mortgages on their balance sheets, said CMHC.

However, the housing agency added that Canada’s housing market has slowed down in recent
months as the Bank of Canada has raised interest rates to combat inflation.

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Higher interest rates impact the amount homeowners are charged on their mortgages, making
them less affordable for many people.

CMHC said that consumers appear to be able to make their mortgage payments due to high
savings rates and a robust job market. The number of mortgages in arrears across Canada fell
across all lender types in 2021, said the housing agency in its report.