Greater Victoria households’ average mortgage payment steadily growing

Greater Victoria households’ average mortgage payment steadily growing

Greater Victoria households’ average mortgage payment steadily growing

Average monthly mortgages in Greater Victoria had a marked increase during Q1 2019, according to data from Canada Mortgage and Housing Corporation.

The monthly payment went up by 4.9% on an annual basis, at $1,628. As for other loan types, HELOCs saw the largest increase in average payments at 12%, while credit card payments ticked up by 3%.

This is despite a lower-than-standard proportion of mortgage holders in the region. Only 27% of Greater Victoria’s consumers carried a mortgage during the first quarter, noticeably lower than the national level of 29%.

Mortgage delinquency rates also increased slightly, from 0.12% of outstanding accounts last year to 0.13% in Q1 2019. In comparison, the BC average was 0.17%.

Fortunately, this is well within the sustainable range.

“The delinquency rates in Vancouver and Victoria have been experiencing steady decline since 2014 but have remained relatively stable at the level of 0.1% since Q3 2017,” CMHC assured.

“This is supported by economic fundamentals including strong employment and population growth, as well as low interest rates and appreciation of home values in all market segments.”

Meanwhile, June figures from the Victoria Real Estate Board showed that among the city’s real estate assets, single-family homes continue to dominate sales activity.

Transactions involving this property type grew by 10.4% annually in June. This was in stark contrast with the 6.1% decline suffered by the condo segment during this time frame.

Overall home sales in June were 4.5% greater than that seen during the same month last year. However, the June figures were 12.7% lower than the transaction level measured in May 2019.