Canadian Banking and Mortgage Portfolio Overview
Canadian Housing Market
Engineered moderation of price and volume
Significant Moderation in Price Growth*
25
20
Aggregate Composite MLS Home Price
Index Y/Y Percentage Change
15
10
50
-5
Volume of Home Sales Near 10-Year Average*
50
Units, 000s
45
Monthly home sales
40
35
30
25
-10
20
06 07 08 09 10 11 12 13 14 15
16 17
18 19 20
Sources: Scotiabank Economics, CREA.
*Actual - not seasonally adjusted
Canada's Five Largest Metropolitan Areas*
11
MLS Home Price Index Benchmark
Price Y/Y Percentage Change
9
9.78
7
8.72
5
Average
2.97
3
1
-1.20
-1
-3
GTA
GVA
10-year monthly moving avg.
07 08 09 10 11 12 13 14
Sources: Scotiabank Economics, CREA.
*Seasonally adjusted
15 16 17 18 19 20
Decline in Share of High-Risk Mortgages
25
20
15
10
5
-0.89
-1.54
0
Montreal
Calgary
Edmonton
Sources: Scotiabank Economics, CREA.
*Actual - not seasonally adjusted
% Share of new mortgages with a loan-to-income
ratio greater than 450%
Mortgage
insurance
rules
tightened
B-20
guideline
revised
Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17
Low-ratio mortgages —
Jun-18
Dec-18
Total mortgages
High-ratio mortgages
Sources: Scotiabank Economics, Bank of Canada Financial System Review 2019.
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