The proportion of Metro 麻豆传媒映画homeowners who are three months or more behind on their mortgage payments is falling, and has been dropping for years, according to Canada Housing and Mortgage Corporation data released February 27.
Only 0.10 per cent of mortgages in Metro 麻豆传媒映画were delinquent in 2018鈥檚 third quarter, down slightly from 0.11 per cent in the same quarter of 2017, said the federal housing agency. This figure is also below the provincial average of 0.16 per cent mortgages in delinquency.
Despite the surge in home prices over 2015-2017, mortgage delinquencies in the region have been in steady decline since 2014. However, although the Q3 2018 figures show another drop, the rate of decline has largely flattened over the year between Q3 2017 and Q3 2018.
CMHC said in its report, 鈥淎 pullback in MLS sales combined with slowing job growth and rising interest rates up to Q3 2018 has contributed to slower growth in credit in the 麻豆传媒映画CMA, resulting in the flattening of the delinquency rate trend."
The decline in mortgage delinquencies may seem surprising, given that average monthly mortgage payments in Metro 麻豆传媒映画had risen by 6.3 per cent year over year in Q3 2018, according to CMHC.
The report authors said, 鈥淚ncreasing average monthly mortgage payments reflect elevated house prices resulting in larger mortgages, as well as rising mortgage rates and their impact on carrying costs.鈥� Even though home prices have fallen on an annual basis , in 2018鈥檚 third quarter (July through September), Metro 麻豆传媒映画home prices were , and interest rates rose several times.
When broken out by mortgage amounts, Metro 麻豆传媒映画homeowners with higher mortgages tended to have more steeply declining delinquency rates. This offset homeowners with less than $200K mortgages, who tended to have slightly increasing delinquency rates.
CMHC said, 鈥淭his suggests that smaller sized mortgages are generally held by borrowers with lower incomes and/or less stable employment than borrowers holding larger mortgages.鈥�
The average Equifax credit rating in Metro 麻豆传媒映画increased by one point, on a year-over-year basis, to 776 points. This figures has been steadily increasing since 2014.
