Mortgage delinquencies across Canada have been gradually falling, but in Vancouver and Toronto they are rising from record lows in 2018.
That’s according to Better Dwelling, which tracks Canadian real estate market trends and was co-founded by analyst Stephen Punwasi.
In Vancouver, mortgage delinquencies, which are measured by the rate of mortgages that are 90 days overdue, reached 0.13 per cent in the first quarter of 2020. That is 8.3 per cent higher than the same quarter in 2019 and has been steadily rising from 0.1 per cent in 2018. Similarly, in Toronto, there was a 10 per cent increase between the first quarter of 2019 and the first quarter of 2020.
The last couple of weeks of the first quarter were the start of pandemic lockdowns in Canada, but the trend to higher figures in Vancouver and Toronto were well established before then.
Mortgage delinquencies are all about how quickly a home can be converted into it cash value. In a hot market, with homes selling fast, an owner who can’t keep up with payments can list the home for sale, get an offer and close within 90 days. There is no effect on the delinquency rate and it stays low. READ THE ARTICLE