The Canadian Mortgage and Housing Corporation is reporting that in May, Canadian mortgage debt rose 6% year-over-year, the fastest annual rate since July 2017. The increase the results of an increase in property sales and record levels of mortgage payment deferrals due to the COVID-19 pandemic. The CMHC has been warning about excessive household borrowing as it forecast a drop of as much as 18% in home prices despite a recent recovery in the market. In July, it tightened underwriting standards for riskier borrowers. The top six banks reported Canadian mortgage deferrals of 13.5% in the three months through July, from a peak of 16% at the end of the previous quarter.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.