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.

LISA MANWARING

MORTGAGE EXPERT

LET'S TALK

RECENT POSTS

Bank of Canada Holds Rate at 2.25% — June 10, 2026

By Lisa Manwaring • June 10, 2026
The Bank of Canada announced today that it is maintaining its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For Canadian homeowners, buyers, and anyone with a mortgage on the horizon — here's what you need to know.

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By Lisa Manwaring • June 3, 2026
Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.