Mortgage originations fall in Ontario, BC, but rise in Quebec

by 26 Aug 2019

Year-over-year, mortgage originations in British Columbia declined 24.7% during the first quarter of the year.

“There could be a couple of different reasons: the interest rate had been rising and there are tighter mortgage rules, and as a result some consumers might not be qualified for mortgage loans,” Pershing Sun, CMHC’s senior analyst of economics for British Columbia, said of the 21,000 originations.

Home Equity Line of Credit usage in B.C. was stable during Q1, decreasing ever so slightly by 0.1% and with a $124,000 balance. However, while fewer British Columbians tapped their HELOC limits, delinquency rates increased—although Vancouver and Victoria were below national and provincial averages.

“The average is somewhat stable and there was only a slight decline, but it could be due to the fact that people who can’t access new loans are relying on HELOC loans,” said Sun.

Year-over-year, originations also dipped 12.3% in Ontario, as there were only to 63,000 during the first quarter. The average balance also declined, albeit barely, by 0.3%. HELOC use, on the other hand, climbed moderately by 2.2% and with an average balance of $96,000.

Read the CMHC’s Ontario report:

“Monthly HELOC obligations saw the highest growth amongst credit types in Toronto (14.5%), Hamilton (13.3%), and Ottawa (11.3%). While elevated home prices can contribute towards both higher average mortgage and HELOC obligations, their impact on the former is tied to the number of new mortgages which has been dampened by recent policies restricting housing demand.”

Quebec saw 43,900 new mortgage loans averaging $171,300 during Q1, a 2.9% increase over the first quarter of 2018.

In the first quarter of 2019, mortgages still accounted for the greatest obligation among the various credit products for Québec CMA households, with an average monthly payment of $881,” read CMHC’s Quebec report.

 

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