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<\/a>Photo:\u00a0Volodymyr Kyrylyuk<\/a> \/ Adobe Stock<\/em><\/p>\nFewer Canadians are signing up for new mortgages.<\/p>\n
According to insights in Equifax Canada\u2019s quarterly Market Pulse report, new mortgage growth fell 8.1 per cent between Q4-2020 and Q4-2021. The largest drops in new mortgages were detected in some of the country\u2019s most expensive housing markets, according to a press release<\/a>. In Toronto and Hamilton, for instance, new mortgages were down 16.1 per cent and 18.7 per cent year-over-year in Q4-2021.<\/p>\n \u201cThere\u2019s no question that sky-rocketing house prices have decreased housing affordability across all segments,\u201d said Rebecca Oakes, assistant vice-president of advanced analytics at Equifax Canada, in the release.<\/p>\n \u201cIn addition to high house prices, 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,\u201d she added.<\/p>\n\n Last quarter, the average loan amount for new mortgages was up, climbing 10.1 per cent between Q4-2020 and Q4-2021. However, loan amounts were down compared to Q3-2021, falling 1.5 per cent from quarter-to-quarter. This marks the first time that average loan amounts for new mortgages have reported a quarterly drop since the COVID-19 pandemic began, according to Equifax Canada. As of Q4-2021, the average loan amount for new mortgages is at $355,000.<\/p>\n Oakes pointed out that this may be an indication that average home prices are stabilizing, but additional market demand and chronic supply shortages could continue to push prices higher.<\/p>\n Mortgage delinquencies \u2014 when a borrower fails to make payments \u2014 continued to fall in Canada as overall debt trended upward last quarter.<\/p>\n Mortgage delinquencies equaled 0.11 per cent, dropping 31.8 per cent annually. By comparison, Equifax Canada reported non-mortgage delinquencies to be 0.86 per cent, down 20.7 per cent year-over-year.<\/p>\n Certain products noted a small increase in delinquency, such as the 90-plus day delinquency rate for credit cards and non-bank auto delinquencies, which rose 2.7 per cent and 14.7 per cent from Q3-2021 to Q4-2021.<\/p>\nMortgage delinquencies stay low, but consumer debt is up<\/h3>\n