It’s stuffed with mortgage and housing stats, although most are from 2010 so it’s not as current as we’d hope.
Here are some of its mortgage-related highlights (our comments in italics)…
Mortgages comprise 68% of Canadians’ total debt. (Interestingly, this is down from the peak of 75% in 1993—even though home prices have risen 137% since then. Canadians have obviously racked up debt in many other ways.)
Housing-related spending was more than 1/5 of Canada’s gross domestic product in 2010, or about $330 billion.
(If demand for housing drops materially, or government policies somehow derail the market, Canadians will quickly feel the economic pain.)
Lenders are using deposits less as a source of mortgage funding. 71.2% of mortgage funds came from deposits in 2006. That’s dropped to 58.9% as of CMHC’s latest data from 14 months ago.
(This decrease has been offset by greater securitization, which lenders relied on for 27% of mortgages in 2010. That said, deposits “remain the cheapest” source of mortgage funding, says CMHC.)
Canada’s Big 6 banks held ~55% of total mortgage credit outstanding.
(That’s down from 64% in 2002.)
Residential mortgages comprise 20% of total bank assets in Canada.
Seniors will account for 24% of Canada’s population by 2036, say forecasts. That’s up from about 14% now.
(The greying population will clearly boost demand for senior housing, but also have implications for the demand on affordable private housing and condos. To the extent that those aged 65+ will downsize, a burgeoning seniors population could also put more detached single-family homes on the market.)
Trivia question: Which part of Canada had the highest average rents for a 2-bedroom apartment in 2010?
If you’re thinking Vancouver, you’re close. It’s # 3 at $1,195 per month, according to survey data.*
Toronto? Nope. It’s # 4 at $1,123 per month.
According to CMHC’s report, the most expensive rental market in Canada was Iqaluit, Nunavut at $2,365 per month. Seems they have a “slight” housing supply problem up there.
Yellowknife was the second priciest at $1,486 per month.
* This data is based on a survey in CMHC’s 2011 Canadian Housing Observer and does not include all cities in Canada.
Rob McLister, CMT
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