Canadian mortgage debt has been soaring, and it’s entirely due to uninsured borrowing. Bank of Canada (BoC) data shows mortgage debt was still rising in May, despite falling home sales. Drilling down into the numbers reveals it was entirely uninsured mortgage growth. The insured segment, with smaller down payments and often first-time buyers, is falling. Earlier this year, a bank exec warned the rise of investors was at the expense of first-time buyers. This is yet another data point giving weight to that narrative.
Canada’s Uninsured Mortgage Debt Recently Topped $1 Trillion
Canada’s uninsured mortgage market has seen a surge of growth and it’s still climbing. The outstanding balance reached $1.0 trillion in May. It represents a jump of 1.4% (+$13.9 billion) for the month, and it’s a whopping 18.7% (+$160.2 billion) higher than last year. It’s an astronomical amount…
