Toronto

Toronto Is Now Home To Over 896,000 Mortgages

Toronto real estate prices are taking its toll on homeownership rates, but the number of mortgages continue to rise.

Toronto Sees The Number of Mortgages Rise To Over 896,000

Toronto real estate had a huge run in prices, and it’s taking its toll on ownership numbers. New Census 2016 numbers released from Statistics Canada give us a little more insight into ownership, and the mortgages that go with them. While the rate of mortgages is on the rise, the rate of homeownership is on the decline.

The Rate of Homeowners With A Mortgage Rises To 63.2%

The rate of homeowners with a mortgage is rising across the Toronto CMA. Census 2016 recorded 1,357,240 homeowners, of which 63.2% had an outstanding mortgage at the time of survey (May 2016). This is up 1.62% from the previous Census in 2011. Not a huge surprise, since the cost of homes jumped 49% during the same period. Only natural that more people would have to borrow money.

Total Mortgages In Toronto Are Now 896,615

The total number of mortgages are increasing at a faster than expected clip. Census 2016 recorded 896,615 homeowners with mortgages, up 6.2% from Census 2011. Before you ask, no – this does not include second mortgages. Also, Census 2006 did not include this set of numbers unfortunately, so we have no long-term trend to compare. There’s other methods to measure this however, so we’ll come back to this number in another article.

Source: Statistics Canada.

Rate of Homeownership Declines For The First Time Since 1991

The rate of homeownership across Toronto declined for the first time in a very long time. The latest Census release pegged ownership at 66.5% in 2016, down from 68.3% in 2011. This is the largest decline ever recorded, and the first decline since 1991. To give a little context, the decline observed in 2016 is almost four times larger than the rate of decline in 1991.

Source: Statistics Canada.

The rate of homeownership is on the decline across Canada, so Toronto appears to be on trend. The total number of mortgages rising is interesting however, as it indicates the rate of all cash buyers is on the decline.

Like this post? Like us on Facebook for the next one in your feed.

Discuss On Facebook

4 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *