According to TransUnion, one of Canada's central credit reporting agencies, Canadian mortgages grew by 49 percent and $145 billion during the second quarter of 2021.
When looking at the size of mortgage debt, the report detailed the average amount grew approximately 22 percent to $379,567. This year, mortgage originations grew a little over $200 billion.
It is clear that pent-up demand, which happened during the pandemic, fuelled higher than average market growth and further prompted the relaxation of mortgage rules allowing an additional supply of credit to stream into the real estate market and accommodate the demand for more credit.
One worry many economists have is the rate of delinquencies since consumers are taking on larger mortgages faster than ever before. Statistics offered by TransUnion show a decline in mortgage delinquency in the country, falling by approximately 5 percent to .13 percent.
According to TransUnion, a large segment of the already minor delinquencies reported were due to mortgage and credit deferrals offered because of the pandemic.
By: Sarah Colucci
Senior Mortgage Agent, Lic. M14000929