Top Residential Mortgage Trends Revealed
It is more difficult for potential borrowers to get qualified for loans subject to the stress test, as shown by declining ratios of mortgage loan approvals to applications in the first half of 2022.
This is just one finding in the Canada Mortgage and Housing Corp.’s fall residential mortgage industry report.
Others include:
- Mortgage growth has slowed as interest rates have risen.
- Mortgage consumers have increasingly turned back to fixed rate mortgages since June, as the discount on variable rate mortgages has vanished.
- The share of mortgages in arrears, or delinquent for 90 days or more, have continued to trend downward across all types of lenders. However, consumers without a mortgage registered notable delinquency rate increases in auto loans and credit cards.
- Mortgage lending growth by alternative lenders outpaced conventional lenders in the second quarter of 2022. Mortgage borrowers in the alternative lending space are more likely to renew their loans since it is now harder to qualify with traditional lenders.
