Date Posted: May 23, 2019
The average mortgage amount increased to $209,570, up by more than 3% from a year ago.
Although the value of the average mortgage has increased, the number of loans grew at a slower pace in the fourth quarter of 2018 as housing activity cooled according to a new report from CMHC (Canadian Mortgage and Housing Corporation).
"While indebtedness of Canadian households remains elevated, growth in the volume of mortgage activity slowed in the last quarter of 2018, partly reflecting lower housing market activity," said Geneviève Lapointe, senior market analyst at CHMC in the report.
"Despite high debt levels, delinquency rates remain low and the number of highly indebted and more vulnerable consumers has decreased."
The increase to the mortgage value, in part, can be attributed to the elevated housing prices across most of the country.
"Their average outstanding balance in credit cards and lines of credit grew at a faster pace than in 2017, except for HELOCs (home equity line of credit) and auto loans, which increased at a slightly slower pace," the report said.
"These trends were also observed among consumers without a mortgage."
Average additional debt for Canadians who hold a mortgage was just over $9,000, up 3.6% from the same time last year. Canadians without a mortgage hold an average balance of about $7,500 which is an increase of 5%.