Canada

Canadians Had Over 5.6 Million Residential Mortgages As Of Census 2016

Canadians Had Over 5.6 Million Residential Mortgages As Of Census 2016

Not a huge surprise to most of you, but Canadians didn’t shy away from mortgages last year. The new Census 2016 release from Statistics Canada show that the rate of homeownership is on the declines. Despite that, the same numbers show that a higher rate of homeowners are taking out mortgages, and the cost of carrying a home continues to show huge growth.

Number of mortgages Rises Above 5.6 Million

The total number of mortgages across the country showed steady growth. Census 2016, which was conducted in May 2016, showed 5,686,576 residential homeowners were still paying a mortgage. This represents a 7.66% increase from the previous Census numbers in 2011. If the number looks higher than normal, that’s because these numbers are self-reported – so they include private mortgages. We normally don’t get any numbers on the size of the private mortgage industry.

Source: Statistics Canada.

Rate of Homeowners With A Mortgage Rises Over 3%

The total number didn’t just rise, the rate of homeowners with mortgages also got a lift. Census 2016 reported that 60.7% of Canadian homeowners have a mortgage, up 3.58% from the previous numbers in 2011. This rate increase is interesting, considering the rate of homeownership is on the decline across the country.

Source: Statistics Canada.

Median Homeowner Costs Rises 15.54%

The median payments by homeowners across the country have increased. Census 2016 shows the median cost of shelter from homeowners is $1,130. This represents an increase of 15.54% when compared to the previous Census. If you’re thinking, “oh, that’s just inflation,” inflation adjusted growth is 8%. That’s pretty steep, considering the country’s rapidly aging population, that you wouldn’t expect to be moving into more expensive digs.

Source: Statistics Canada.

If the number of mortgages didn’t register with you, that’s about 1 in 7 people. Remember that only half of Canada’s population is an active part of the workforce. This really makes this number mind boggling. Is this peak mortgage growth? Leave your comments below.

Curious about a regional breakdown? Here’s Toronto, and Vancouver.

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3 Comments

  • Reply
    Catherine @ C21 Elevate 2 weeks ago

    Thank you very much Daniel! An amazing read on mortgage statistics.

  • Reply
    Alex 1 week ago

    Hi Daniel
    As others mentioned you can’t use 5% as a base of your analysis. Just FYI in April 2017 it was possible to get 2.25% 5 year fixed. Now people get 2.75% if you know how to negotiate. Makes HUGE difference. The real estate prices would not be where they are today if rate was 5%. Having said this, it’s possible that rates could climb to that territory in next couple of years and IF it happens I would expect significent drop in prices (crash)
    Alex

  • Reply
    Justin Thyme 1 week ago

    There is much data in there to be mined. But more numbers are needed to do so. How is the percentage of home ownership figure calculated? Percentage of total adults, total families, total dwelling units, or total households? Every rental unit is owned by someone, so EVERY home is owned, owner-occupied or not. Some households, therefore, might own more than one house. And I presume a lot of the mortgages would be on homes that are rented, not owner-occupied.

    Knowing this would lead to two pieces of related data. The ratio of mortgages to home owners (how many home owners are mortgage free as a percentage of all home owners) and the number of households that: have a mortgage, are mortgage free, or rent. You don’t really own your home until the mortgage is paid. Until you do, you are still renting at least part of it.

    Is Canada turning into a nation of indentured homeowners, or free-and-clear homeowners?

    And how are reverse mortgages handled?

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