Mining consumer credit data from reporting agency Equifax, the Canada Mortgage and Housing Corporation stated that overall low mortgage delinquency rates are helping reduce stress on the national mortgage market.
“While it’s true that oil dependant markets like Calgary and Edmonton have seen a recent rise in delinquency rates, Vancouver and Toronto are recording some of the lowest rates in Canada - despite high home prices,” CMHC stated.
Equifax gave the Crown corporation an opportunity to form a clearer view of the Canadian mortgage market independent of the hysteria surrounding home price growth and activity in the hottest markets, CMHC officials said.
“We know there is a need for more reliable data to help policy makers analyze the key concern of rising household debt in Canada. The Equifax data allows us to expand our analysis beyond mortgages insured by CMHC and provide a level of detail never before available,” CMHC senior statistical researcher Maxim Armstrong explained.
As an offshoot of this data mining, CMHC will be introducing its newest product (“Homeowners’ Debt at a Glance”), which will feature “quick-read” analyses focused on homeowners, mortgage holders and potential homebuyers' debt and credit use. Among the highlights are as follows:
- From Q3 2012 to Q4 2016, the Canadian mortgage market remained stable.
- Mortgage delinquency rates and the share of mortgages granted to higher risk borrowers remained low and stable in 2016.
- Delinquency rates in petro-dependent regions, in particular Edmonton and Calgary, continue to trend up.
- Vancouver and Toronto continue to record some of the lowest delinquency rates in Canada.
CMHC said that it will be releasing a national report on the Equifax data on June 29.
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