Canada’s mortgage market is in the spotlight with rising delinquencies and major policy changes aiming to tackle housing affordability and stabilize the market. Delinquencies, especially among alternative lenders, are increasing, with Canada Mortgage and Housing Corporation (CMHC) reporting that mortgages over 90 days delinquent now account for 0.19% of the total market—a small but growing number as more borrowers face financial strain in a high-interest environment
Canadian Mortgage Trends Website - Delinquencies
The federal government’s latest reforms, coming into effect in December 2024, focus on increasing access for buyers and easing the burden of monthly mortgage costs. These include raising the CMHC-insured mortgage cap to $1.5 million, allowing more buyers in high-cost markets like Toronto and Vancouver to secure mortgages with lower down payments. Additionally, 30-year amortizations will now be available for all first-time homebuyers, reducing monthly payment amounts and making homeownership more attainable despite rising property prices. This reform aims to counter the recent affordability challenges faced by younger buyers and new market entrants, who have struggled with both high home prices and strict lending requirements
These changes, however, come with a note of caution. While they expand access, they may increase household debt, with potential long-term risks if interest rates climb again. The market, therefore, remains in a delicate balance, with these reforms striving to support Canadian buyers while managing broader economic risks. For those navigating this evolving landscape, it’s wise to work closely with a trusted advisor who understands these dynamics.
#CanadianRealEstate #MortgageDelinquency #CMHC #Homeownership #HousingAffordability #CanadaMortgagePolicy
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