E The Canadian Credit Markets Put A Large Damper On The Housing Market

Approximately 50% of all mortgages (including home equity lines) are up for renewal in 2019. Borrowers are facing higher interest rates of around 50bps for renewals compared to rates three years ago. Given the recent downward trend in mortgage demand and now higher rates, we can expect further weakness in mortgage growth and that will likely seep into housing demand.

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Gary Anderson 1 year ago Contributor's comment

Dreadful charts, Prof. Rollover mortgages must be terrifying for many.

Norman Mogil 1 year ago Author's comment

It is starting to hurt. I have heard of many mortgage brokers leaving the industry because they cannot service clients. At some point the authorities are going to have to relent on the rules. The worse rule is a new borrower has to show ability to carry a mortgage at 200 bps above the posted Bank of Canada rate for mortgages and that rate is already above the market. An example of bureaucrats not understanding the market they regulate.