Number of mortgages fell 3.4% in second quarter as stress test rules keep young buyers out
The number of new mortgages taken up in Canada in the second quarter of the year fell by 3.4 per cent compared to a year earlier, according to credit agency TransUnion, and younger borrowers seemed particularly discouraged from entering the housing market..
There was a decrease of 18 per cent in millennial borrowers (aged 24 to 38) and 22 per cent in Generation Z borrowers (aged 18-23), TransUnion found. The number of Generation Z mortgage holders is small, but more than 11,600 fewer millennials either applied for new mortgages or renewed a mortgage in the quarter.
People in this age group are just trying to enter the real estate market for the first time and often struggle to come up with a 20 per cent down payment.