A new report from Canada Mortgage and Housing Corporation confirms what we have all suspected: there were fewer mortgages taken out in 2017 compared to 2016. The key reason for the decline suggests 2018 will see more of the same.
Using data from credit monitoring agency Equifax, CMHC reports just shy of 960,000 new mortgage loans in 2017, down 6.5% from 2016.
Of the five categories of borrowers examined, the biggest decline in new mortgages was a 17.5% drop among homeowners who renewed with a new lender. This suggests: homeowners may not be shopping around for renewals the way they do for their initial mortgage; lenders are offering attractive terms to retain clients; the terms and conditions for moving to a new lender are too onerous.