New home purchases are the main driver of mortgage debt

February 18, 2022



Purchase of new property is the main driver of mortgage debt for chartered banks—notably in the uninsured space. In the third quarter of 2021, close to $58 billion worth of residential mortgages were extended—up more than 60 per cent compared to the same period in 2020.
Refinancing also contributed to the increase in mortgage debt (more than 16 percent year over year) as mortgage borrowers capitalized on the low interest rate environment and added equity due to house price increases.
Mortgage growth continued to increase in the third quarter of 2021 bringing total residential mortgage debt in Canada up to $1.77 trillion.
Factors contributing to the ability of Canadians to make the mortgage monthly payments on time included: high housing prices coupled with liquid housing markets making it easier to sell property rapidly; and, greater consumer savings resulting in more disposable income.