HomeMortgageMortgage debt grew at its fastest pace since 2008: CMHC

Mortgage debt grew at its fastest pace since 2008: CMHC

Record-low interest rates drove mortgage debt 9% higher on an annual basis in 2021, its fastest pace since 2008.

That pace of growth continued in the first two months of 2022, with year-over-year growth topping 10.6%, according to new data from the Canada Mortgage and Housing Corporation (CMHC).

In its bi-annual Residential Mortgage Industry Report, CMHC said the acceleration in mortgage borrowing was driven by increases in uninsured mortgages for both purchases and refinancing.

Chartered banks saw new mortgage originations rise 43% compared to 2020, while refinances were up 22%. That translated into roughly $400 billion worth of residential mortgages being added to their balance sheets, CMHC said.

Meanwhile, credit unions added $54 billion worth of new residential mortgage debt to their portfolios.

Majority of Canadians took variable…

Read more at www.canadianmortgagetrends.com

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