Montreal

Montreal Had Over 622,000 Residential Mortgages In 2016

Montreal real estate is seeing more buyers with mortgages, even though the rate of homeownership growth just hit an all-time low.

Montreal Had Over 622,000 Residential Mortgages In 2016

Montreal real estate has much more mortgages than it did 5 years ago. New numbers from the Statistics Canada Census 2016 release show explosive growth in the total number of mortgages. This increase is much faster than the national average.

Total mortgages increased almost 14%

The total number of residential mortgages in the Montreal CMA showed huge growth. Census 2016 shows 64.8% of homeowners had a mortgage at the time of survey. This works out to ~622,494 mortgages, a 12.96% increase from the previous Census in 2011. That’s much faster than the national average, which only saw a 7.66% increase. In case you’re wondering why that number is higher than you might have heard before, it’s because these are self-reported. This means private mortgages were likely included, which are normally excluded from statistics.

Source: Statistics Canada.

Rate of homeowners with a mortgage rose over 4%

The rate of homeowners with a mortgage also showed quick growth. The rate rose to 64.8%, up 4.18% from 2011. This makes sense, since the city is one of the few regions in the country to have an increase in homeownership.

The rate of homeownership rose to 55.7%, a 1.27% increase from 2011. The jump however, is the lowest increase in the rate of homeownership in over 45 years of Census data. I don’t really expect it to grow by 2021, but stranger things have happened.

Source: Statistics Canada.

Median cost paid by homeowners was $1,181

The median cost a homeowner is paying for their home is on the rise. Census 2016 shows the median Montreal CMA homeowner pays $1,181 per month, a 13.44% increase compared to 2011. Inflation adjusting those numbers, the real increase is 6.3% from 2011. That’s lower than the national inflation adjusted increase of 8%.

Source: Statistics Canada.

Montreal has one of the lowest rates of homeownership in the country, but one of the highest rates of homeowners with a mortgage. The growth of mortgages is almost twice the rate of the national average, showing locals are putting an increasing focus on buying. This is likely the reason we’ve seen a slow climb in prices, however the increase in homeownership is the slowest we’ve seen in 45 years. Personally, I don’t expect this to be a big driver of prices in the future.

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