The State of Mortgage Consumers
Lisa Manwaring • May 9, 2018
Mortgage consumer debt reached a record level in the second quarter of 2017, yet mortgage holders have proven capable of managing their increasing monthly obligations.
That’s according to CMHC’s recently released Mortgage and Consumer Credit Trends report, which said Canadian households’ credit market debt reached a record $1.70 for every dollar of disposable income. Mortgage debt was one of the main drivers, but CMHC notes that credit card and auto loan debt have been accelerating as well.
At the same time, the household saving rate fell to a nine-year low, leaving many Canadians with a “limited financial cushion” to manage their debts, the report noted.
“Despite rising monthly debt obligations in the second quarter of 2017, mortgage holders continued to manage their overall debt fairly,” said Maxim Armstrong, Manager, Housing Indicators and Analytics at CMHC. “Other credit consumers recorded a slight rise in delinquency. On the whole, signs of vulnerabilities for the Canadian housing market and financial system remained low.”
The time period covered by this report was shortly after the implementation of the Department of Finance’s first round of stress-testing measures aimed at insured mortgages. That may have contributed to new loan originations in the second quarter being down 7.3% from a year earlier, and a decline in the average mortgage debt per consumer with a new mortgage.
Here are some of the other key findings:
Mortgage Market
- Mortgage balances of over $400,000 rose and comprised about one-third of outstanding mortgage debt.
- The highest concentration of outstanding mortgage debt was in balances ranging from $200,000 and $300,000.
- The average new mortgage loan amount was 1.4 times higher than the average value of existing mortgage loans.
- Compared to a year earlier, the average value of scheduled mortgage payments rose by 2.4% for existing mortgages and by 5% for new mortgages
Signs of Credit Vulnerabilities
- Unsurprisingly, consumers without a mortgage were more susceptible to bankruptcy compared to mortgage holders, and the gap between the two types of consumers widened.
- The share of mortgage holders with a high likelihood of bankruptcy fell to 5.6%, down 61 bps from a year earlier.
- Average monthly obligations increased in all major credit products vs. a year earlier. The average non-mortgage obligations for both mortgage holders and consumers without a mortgage rose to their highest level since 2013, to $386 and $249, respectively.
- The share of mortgages that had payments in arrears of 90 days or more fell to a five-year low, signalling a more liquid market where mortgage holders facing difficulties could easily sell their property before reaching serious delinquency, the report noted.
Credit Scores
- Consumers with a very good or excellent credit score maintained the largest share of mortgage loans (83.3%), suggesting a low probability of loan defaults.
- The number and value of mortgage loans outstanding by consumers with a poor credit score fell to its lowest level since 2012.
- The average credit score continued to improve for mortgage holders with both an existing mortgage and a new mortgage.
- Those without a mortgage had their lowest average credit score since 2014.
Demographics
- The majority of mortgage holders are aged 34–54 and account for roughly 60% of the outstanding mortgage balance.
- Those over 65 represent 10% of the market with 7% of the outstanding balance, and those under 35 represent 17% of the market with nearly 20% of the outstanding mortgage balance.
- Mortgage holders aged 35–44 made the highest monthly mortgage payments, averaging $1,323.
This article was written by Steve Huebl and originally appeared on the Canadian Mortgage Trendson April 25th 2018, Canadian Mortgage Trends is a publication of Mortgage Professionals Canada.
RECENT POSTS
If you're a homeowner juggling multiple debts, you're not alone. Credit cards, car loans, lines of credit—it can feel like you’re paying out in every direction with no end in sight. But what if there was a smarter way to handle it? Good news: there is. And it starts with your home. Use the Equity You’ve Built to Lighten the Load Every mortgage payment you make, every bit your home appreciates—you're building equity. And that equity can be a powerful financial tool. Instead of letting high-interest debts drain your income, you can leverage your home’s equity to combine and simplify what you owe into one manageable, lower-interest payment. What Does That Look Like? This strategy is called debt consolidation , and there are a few ways to do it: Refinance your existing mortgage Access a Home Equity Line of Credit (HELOC) Take out a second mortgage Each option has its own pros and cons, and the right one depends on your situation. That’s where I come in—we’ll look at the numbers together and choose the best path forward. What Can You Consolidate? You can roll most types of consumer debt into your mortgage, including: Credit cards Personal loans Payday loans Car loans Unsecured lines of credit Student loans These types of debts often come with sky-high interest rates. When you consolidate them into a mortgage—secured by your home—you can typically access much lower rates, freeing up cash flow and reducing financial stress. Why This Works Debt consolidation through your mortgage offers: Lower interest rates (often significantly lower than credit cards or payday loans) One simple monthly payment Potential for faster repayment Improved cash flow And if your mortgage allows prepayment privileges—like lump-sum payments or increased monthly payments—those features can help you pay everything off even faster. Smart Strategy, Not Just a Quick Fix This isn’t just about lowering your monthly bills (although that’s a major perk). It’s about restructuring your finances in a way that’s sustainable, efficient, and empowering. Instead of feeling like you're constantly catching up, you can create a plan to move forward with confidence—and even start saving again. Here’s What the Process Looks Like: Review your current debts and cash flow Assess how much equity you’ve built in your home Explore consolidation options that fit your goals Create a personalized plan to streamline your payments and reduce overall costs Ready to Regain Control? If your debts are holding you back and you're ready to use the equity you've worked hard to build, let's talk. There’s no pressure—just a practical conversation about your options and how to move toward a more flexible, debt-free future. Reach out today. I’m here to help you make the most of what you already have.
Bank of Canada maintains policy rate at 2¼%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario January 28, 2026 The Bank of Canada today held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The outlook for the global and Canadian economies is little changed relative to the projection in the October Monetary Policy Report (MPR). However, the outlook is vulnerable to unpredictable US trade policies and geopolitical risks. Economic growth in the United States continues to outpace expectations and is projected to remain solid, driven by AI-related investment and consumer spending. Tariffs are pushing up US inflation, although their effect is expected to fade gradually later this year. In the euro area, growth has been supported by activity in service sectors and will get additional support from fiscal policy. China’s GDP growth is expected to slow gradually, as weakening domestic demand offsets strength in exports. Overall, the Bank expects global growth to average about 3% over the projection horizon. Global financial conditions have remained accommodative overall. Recent weakness in the US dollar has pushed the Canadian dollar above 72 cents, roughly where it had been since the October MPR. Oil prices have been fluctuating in response to geopolitical events and, going forward, are assumed to be slightly below the levels in the October report. US trade restrictions and uncertainty continue to disrupt growth in Canada. After a strong third quarter, GDP growth in the fourth quarter likely stalled. Exports continue to be buffeted by US tariffs, while domestic demand appears to be picking up. Employment has risen in recent months. Still, the unemployment rate remains elevated at 6.8% and relatively few businesses say they plan to hire more workers. Economic growth is projected to be modest in the near term as population growth slows and Canada adjusts to US protectionism. In the projection, consumer spending holds up and business investment strengthens gradually, with fiscal policy providing some support. The Bank projects growth of 1.1% in 2026 and 1.5% in 2027, broadly in line with the October projection. A key source of uncertainty is the upcoming review of the Canada-US-Mexico Agreement. CPI inflation picked up in December to 2.4%, boosted by base-year effects linked to last winter’s GST/HST holiday. Excluding the effect of changes in taxes, inflation has been slowing since September. The Bank’s preferred measures of core inflation have eased from 3% in October to around 2½% in December. Inflation was 2.1% in 2025 and the Bank expects inflation to stay close to the 2% target over the projection period, with trade-related cost pressures offset by excess supply. Monetary policy is focused on keeping inflation close to the 2% target while helping the economy through this period of structural adjustment. Governing Council judges the current policy rate remains appropriate, conditional on the economy evolving broadly in line with the outlook we published today. However, uncertainty is heightened and we are monitoring risks closely. If the outlook changes, we are prepared to respond. The Bank is committed to ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is March 18, 2026. The Bank’s next MPR will be released on April 29, 2026. Read the January 28th, 2026 Monetary Report
