HomeMortgageCanadian Mortgage Debt Tops $2 Trillion, Likely To Soon Eclipse Size of...

Canadian Mortgage Debt Tops $2 Trillion, Likely To Soon Eclipse Size of GDP

Higher interest rates are slowing mortgage borrowing but debt is still growing fast. Bank of Canada (BoC) data shows outstanding mortgage credit climbed in May 2022. Falling home sales are beginning to erode the pace of borrowing. Even with the minor slowdown, mortgage debt is likely to surpass the size of GDP soon.

Canadian Mortgage Debt Is The Equivalent of 98% of GDP

Canadian outstanding mortgage debt is reaching astronomical levels. Households owed $2.01 trillion of residential mortgage debt in May. It was 0.9% (+$17.4 billion) higher for the month, and 10.1% (+$185.0 billion) above the balance last year. It sounds like a lot of debt, but just how big is it? Mortgage debt is now 98% the size of GDP at basic prices. 

Canadian Residential Mortgage Debt

The outstanding balance of Canadian residential mortgage debt held by institutions.

Source: Bank of Canada; Better…

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