New numbers from TransUnion revealed that in the first quarter of 2018, the volume of new mortgages among Canada’s youngest home buyers fell sharply, posting a 19% decline in the 24-38 year old bracket and 22% among those ages 18-23.
To compare, activity among baby boomers (54-72 years old) went up by 18%.
TransUnion Canada director of financial services research and consulting Matt Fabian stated that these numbers attested to the much more visible impact of stricter mortgage rules among younger buyers.
“The stress-testing rules are about affordability,” Fabian told Global News.
Read more: Nearly 3/4 of Canadians have not saved enough for retirement – study
In stark contrast, Canada’s eldest do not appear to be slowing down in their borrowing. In the same quarter, mortgages originations among Canadians age 73-93 dramatically increased by 63% year-over-year.
Fabian said that this demographic has benefited from large gains in equity in recent years. Thus, they tend not to worry much about details like loan-to-value ratios.
However, despite the vibrant borrowing among the elderly, this segment still represents a rather insignificant portion of total Canadian mortgage activity.
Overall, new mortgage volume in Q1 2018 shrunk by 3.4% year-over-year. This followed a more serious 8% annual decline in the period between October and December 2017.