International Banking - Annual Overview
CANADIAN MORTGAGE MARKET
.
.
Canadian housing market is less expensive on a global
scale, particularly for buyers with U.S dollars
Mortgage holders
。 No negative equity mortgages in Canada
о
89% of borrowers have 75% or less LTV. Significant price decreases
required to reach a negative equity position
。 Amount of non-recourse mortgages are low (~6-7% of total Canadian
mortgages at most) and isolated to only Alberta (excluding high-LTV
mortgages) and Saskatchewan.
。 High amount of equity: average equity ratio is 74%
On average, 40% of available HELOC credit is drawn, 60% is undrawn
。 Approximately half of first-time home buyers in Canada are able to source
their down payments from their personal savings
• 2014-16 data shows 75% of buyers from that period have
25% or more equity
.
。 Partly reflects speed of rising house prices, but also increased emphasis on
down payment requirements and tightened mortgage rules
2014-16 data indicates 39% of first-time home buyers had
less than 20% down-a low point historically
• Efforts to cool the housing market are working, as
evidenced by moderating price appreciation.
TWO-THIRDS OF CDN HOUSEHOLDS
DO NOT HAVE A MORTGAGE
40
%
35
30
25
20
195
15
10
5
0
Owned dwelling Owned dwelling
with a mortgage
Rented
without a
mortgage
Sources: Scotiabank Economics, Statistics Canada
HIGH PERCENTAGE OF EQUITY
(REAL ESTATE EQUITY AS % OF REAL
ESTATE ASSETS)
80
%
70
60
50
US
Canada
40
30
90 92 94 96 98 00 02 04 06 08 10 12 14 16
Sources: Scotiabank Economics, Federal
Reserve Board, Statistics Canada.
Scotiabank 49View entire presentation