Investor Presentaiton
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Canada's housing market is strong
National existing home sales have pulled back in the summer from record highs in March but remain well above normal
levels. Record-low mortgage rates and shifts in demand arising from remote working have supported the market
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Benchmark prices have accelerated 21% in the past year amid historically low supply relative to sales
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Home sales growth should moderate amid less pent-up demand, eroding affordability, and a higher minimum qualifying rate
on federally-regulated mortgages. However, prices are likely to continue to increase due to low supply
Substantial fiscal income-support and mortgage deferral programs have kept foreclosure rates low
Mortgage arrears remain near record lows, though they could rise moderately due to elevated unemployment
Debt servicing costs (relative to income) have eased from all-time highs
Debt Service Ratio
Mortgage Delinquencies/Unemployment
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
1990
1991
1992-
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006-
2007
2008
Total
Interest only
Source: BMO CM Economics and Canadian Bankers' Association as at October 1, 2021
This slide contains forward looking statements. See caution on slide 2
BMO Financial Group
2013
2014
2015
2017
2018
2019
2020
2021
0.50
0.45
0.40
0.35
0.30
0.25
0.20
0.15
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Canada: Percent of Arrears to Total Number of Residential Mortgages (%)
Canada: Unemployment Rate: Both Sexes, 15 Years and Over (SA, %)
Investor Presentation • October 2021
38
14.0
13.0
12.0
11.0
10.0
9.0
8.0
7.0
6.0
5.0View entire presentation