Financial Health and Performance Overview
Canada: Housing Finances
MORE THAN HALF OF CANADIAN HOUSEHOLDS
DON'T HAVE A MORTGAGE OR HELOC 1
5 YEAR MORTGAGE RATES RESETTING HIGHER
423225050
% of households (2020 est.)
11.5
15
29.1
10
200
5-year difference, basis points
150
with HELOC
100
50
1.9
0
-50
32.8
-100
24.3
-150
-200
15
16
17
18
Owned dwelling w/ mortgage Owned dwelling w/o mortgage
Rented
HIGHER HOME EQUITY IN CANADA 2
forecast*
19
21
22
23
20
24
*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 3
10
Official (excl. HELOCs)
% of total loans past due three
or more months
8
80
equity as % of real estate assets
75
70
Cda estimate incl. HELOCs
65
U.S. estimate with NFPS
excl. HELOCS
60
55
Official FRB with NFPs
50
(incl. HELOCs)
45
40
40
32
92
94 96 98
00 02 04 06
08
10
12 14 16
161
18 20
20
6
01
4
2
U.S.+foreclosures
U.S.
Canada
22
92 94
96 98 00 02 04 06
08
10
12
14 16 18 20 22
1 Sources: Scotiabank Economics, Mortgage Professionals Canada; 2 Sources: Scotiabank Economics, OSFI, FCAC, Statistics Canada, Federal Reserve Board; 3 Sources: Scotiabank Economics, MBA, CBA.
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