Bank of Canada data indicated that mortgage debt at institutional lenders reached a new high of $1.62 trillion in November, with the rate of annual growth at its highest level in over a year.
The figure was found to be 0.37% higher on a monthly basis, and represented a considerable 4.6% year-over-year increase.
“The 12-month rate of growth has been accelerating over the past few months. November’s 4.6% 12-month increase marks 8 consecutive months of acceleration,” real estate information hub Better Dwelling reported earlier this week. “The rate is now at the highest level since April 2018, and it was the biggest November since 2017.”
However, the same BoC numbers also warn of a possible deceleration in the very near future, Better Dwelling added.
“The 3-month annualized pace of growth reached 5.7% in November, down 3.39% from the month before,” the analysis stated. “This is only one decline, so it’s unclear if it’ll follow with further declines going forward. However, it does show that growth lost a little steam.”
Compounding the situation is that strong increases in insolvency levels throughout 2019 will most likely continue well into this year, according to the Canadian Association of Insolvency and Restructuring Professionals.
Latest figures from the Office of the Superintendent of Bankruptcy showed that insolvency across Canada intensified by 8.9% over the year ending November 2019. This represented a total of 135,983 individuals falling into insolvency during this period.