Over the last four years the average Canadian mortgage has increased in size by 36%, according to data from Ipsos Reid’s Canadian Financial Monitor.
There’s also been a slight shift towards variable rates.
|% of Households with a mortgage||34%||34%|
|Avg. Mortgage Balance||$105,000||$143,000|
|% with fixed rates||71%||68%|
|% with variable rates||29%||32%|
Going forward, people will be watching to see if rising rates and/or falling home prices reverse the trend. If so, average mortgage balances could drop for a while.
Conversely, there is always a possibility that down payments will shrink and/or people will take out more equity from their homes. Either of these things would counterbalance the above and support mortgage balances to some extent.
It’s difficult to speculate, though, since historical data on average balances, down payment size and equity take-outs is hard to come by.