Canada’s outstanding mortgage credit load continues breaking records, reaching a new high of more than $1.59 trillion as of August, according to the country’s central bank.
Data from the Bank of Canada indicated that this unprecedented high came as a result of a 4% annual increase, and a 0.6% gain from July 2019.
August also marked the fifth straight month of increases.
“Canadian real estate sales are rising from last year’s anemic levels, and so is mortgage debt,” Better Dwelling stated in a new analysis of the figures.
“More surprising is mortgage credit growth is actually accelerating into the fall. For the first-time in years, annual growth is now bigger than the year before.”
The August upswing was 8.1% higher than the year-over-year gain seen during the same month last year.
A major contributor to the trend is the rising number of buyers, amid lower rates and greater population growth.
Statistics Canada data indicated that the national population expanded by 531,497 to roughly 37.6 million in July. This was the largest year-over-year increase registered since the 1970s.
As a result, condo markets in Toronto, Vancouver, and Montreal have enjoyed massive acceleration this fall, especially when compared to other major cities south of the border.