BC Housing and Mortgage Insights Newsletter November 15, 2024

Rising mortgage arrears, financial strain, and government policies continue to shape Canada’s housing market. Experts warn about growing risks in key cities, alternative lending, and delayed rate cuts. Addressing supply issues and understanding long-term impacts will be critical for homeowners and borrowers in the months ahead.
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Analysis of the Canadian Residential Mortgage Market

Mortgage arrears in Canada are expected to rise, particularly in Toronto and Vancouver, as financial pressures persist. This analysis examines key predictors, regional trends, and the role of market conditions in influencing mortgage delinquency rates across major cities.

BoC Official Warns Against Playing with Mortgage Rules to Make Housing Affordable

Bank of Canada’s Carolyn Rogers cautions against easing mortgage rules to address housing affordability, warning of long-term financial risks. While extended amortization periods may lower monthly costs, they increase overall debt. Achieving affordability, she argues, requires addressing supply and demand imbalances over time.

CMHC Says Mortgage Risks Remain as Delinquencies Creep Up, Alternative Lending Grows

CMHC warns that mortgage risks remain as delinquency rates rise and alternative lending grows. With over a million mortgages set to renew in 2025 at higher rates, financial strain is increasing, particularly among borrowers in the alternative lending segment. Household debt and rising delinquencies remain key concerns.

Mortgage Borrowers Will Foot the Bill for Government GST Cuts and Other Rebates

Government stimulus measures, like rebates and GST holidays, could indirectly drive higher interest rates, warns Robert McLister. For variable-rate mortgage holders, this means potential added costs in 2025 as rate cuts could be delayed. Borrowers should be aware of the hidden impacts on their finances.