Overview of Canadian Bail-in Regulations
Canadian Mortgage Market
Less than half of households have a mortgage or a HELOC
⚫ Mortgage holders
о
Less than 50% of Canadian households have exposure to a mortgage
and/or a HELOC
。 Negligible number of negative equity mortgages in Canada
о
о
91% of all homeowners have equity ratios of 25% or higher. Significant price
decreases required to reach a negative equity position
High share of equity: average equity ratio is 74% (excluding HELOCs)
Approximately half of first-time home buyers in Canada are able to source
their down payments from their personal savings
⚫ 2014-17 data show 79% of buyers from that period have
25% or more equity
o Reflects speed of rising house prices, increased down payment
requirements, and tightened mortgage rules
• 2014-17 data indicate only 42% of first-time home buyers
had less than 20% down
More than 50% of Households Do Not
Have a Mortgage or HELOC
45
% of households, 2017
40
40
55
35
10.6
■with HELOC
3.4
30
25
20
32.0
15
30.7
22.8
10
5
0
Owned dwelling
w/ mortgage
Owned dwelling
w/o mortgage
Rented
Sources: Scotiabank Economics, Mortgage Professionals Canada.
High Percentage of Equity
(real estate equity as % of real estate assets)
Efforts to cool the housing market are working, which
implies moderating price appreciation
80
%
Official (excludes HELOCs)
75
70
Cda estimate
including HELOCS
65
US estimate
60
with NFPs
excluding
HELOCS
55
50
45
Official FRB with NFPs
40
(includes HELOCs)
35
90 92 94 96 98 00 02 04 06 08 10 12 14 16
Sources: Scotiabank Economics, OSFI, FCAC,
Statistics Canada, Federal Reserve Board.
Scotiabank®
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