Economic Backdrop and Financial Performance Objectives
Canadians have significant equity ownership in their homes
■ Canadians carry a significant share of equity in their homes.
■ Growth in residential mortgages reached a 14-year high in the
early months of 2022, but the housing market downturn has
since moderated the pace materially.
Mortgage delinquency rates remain exceptionally low in Canada
and have been stable through recent credit cycles.
■ RBC monitors its residential mortgage and broader retail
portfolios closely, and performs stress tests for dramatic
movements in house prices, GDP, interest rates and
unemployment rates.
Canadians maintain high levels of equity in their homes
85
80
75 70
65
56
60
55
50
Equity Ownership (1)
(Owners' equity as a % of total value of residential real estate assets)
-Canada <-U.S.
45
40
35
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Growth in residential mortgages is slowing again
Residential Mortgage Growth (2)
16
(Year-over-year % change)
The mortgage delinquency rate still near a 30-year low in
Canada
Mortgage Delinquencies (3)
6
(Mortgages 90+ days in arrears as a % of total mortgages)
-Canada
-U.S.
14
12
10
8
6
4
2
5
4
3
2
1
0
0
91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
19 20 21 22 23 24
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23
(1) Statistics Canada, Federal Reserve Board, RBC Economics. (2) Bank of Canada, RBC Economics. (3) Canadian Bankers Association, Mortgage Bankers Association, RBC Economics.
51 | CANADIAN HOUSING MARKET
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