Embracing Fintech
CA: Housing Finances
More than Half of Canadian Households
Don't Have a Mortgage or HELOC
[% of households (2020 est.)
5-Year Mortgage Rates
Resetting Higher
4430225050
200
5-year difference, basis points
with HELOC
150
11.5
100
50
1.9
0
-50
32.8
15
-100
29.1
24.3
-150
10
-200
15
16
17
Owned dwelling w/ mortgage
Owned dwelling w/o
mortgage
Sources: Scotiabank Economics, Mortgage Professionals Canada.
Higher Home Equity in Canada
80
equity as % of real estate assets
75
70
Cda estimate incl. HELOCS
65
60
55
50
SIS
Official FRB with NFPS
(incl. HELOCs)
45
45
Rented
18
19
20
21
forecast*
22
23
*Based on Scotiabank Economics forecast of 5-year government of Canada bond yields and historical
spreads between the conventional 5-year mortgage rate and the GoC 5-year bond yield.
Sources: Scotiabank Economics, Bank of Canada.
Canadian Mortgage Delinquencies Declining
10
% of total loans past due three
Official (excl. HELOCs)
or more months
8
U.S. estimate with NFPs
excl. HELOCs
6
4
2
40
40
0
92 94 96 98 00
02 04 06 08
10
12 14
16
18
20
22
Sources: Scotiabank Economics, OSFI, FCAC, Statistics Canada, Federal Reserve Board.
92 94 96 98 00 02 04 06 08 10
Sources: Scotiabank Economics, MBA, CBA.
U.S. + foreclosures
U.S.
Canada
12 14 16 18 20 22
22
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