![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2019\/02\/canadian-housing-market-1.jpg\")
<\/a><\/p>\nPhoto: James Bombales<\/em><\/p>\n Higher interest rates and new lending rules have curbed Canadians\u2019 appetite for taking on mortgage debt, a new report suggests.<\/p>\n According to credit-rating agency TransUnion Canada, the number of mortgages originated across the country in the third quarter of last year fell 12.9 percent from the same period in 2017.<\/p>\n The steepest decline was in BC, where originations collapsed 26.5 percent as the Vancouver housing market continued to correct, while Canada\u2019s most active province for home sales, Ontario, saw originations drop 16.2 percent.<\/p>\n\n Only in Quebec did mortgage originations rise. The number of originations increased by 1.6 percent as Montreal\u2019s housing market bucks a national trend and picks up steam.<\/p>\n \u201cIt is clear from the data that mortgage originations have slowed materially,\u201d said Matt Fabian, TransUnion\u2019s director of financial services research and consulting. \u201cConsumers seeking to purchase new homes may find obtaining financing both more difficult and more expensive in the current environment,\u201d Fabian continues.<\/p>\n The average new mortgage amount also dropped 3.6 percent annually in the third quarter to $280,700. TransUnion speculates the decline could partly be the result of homebuyers switching their focus in terms of housing type and area. Affordability challenges in Canada\u2019s biggest markets have led to increased demand for condos, for example. Buyers might also be looking to lower-priced areas.<\/p>\n \u201cIt may also be driven to some extent by the new mortgage qualifying rules, as many consumers will qualify for lower mortgage amounts and may need to either seek smaller homes or provide larger down payments as a result,\u201d the report reads.<\/p>\n