The Canadian Mortgage Market: Unique, Dynamic, and Facing Challenges 🏡📊

Did you know? The Canadian mortgage market is unlike any other, and it’s navigating some significant challenges right now:

🔍 Key Characteristics: 👉 Structure: Unlike the U.S. market, where 30-year fixed mortgages are common, most Canadian mortgages are variable-rate or have shorter fixed terms (5 years or less). This makes Canadian households more sensitive to rate changes. 👉 Size & Impact: With mortgage loans totaling around C$2.2 trillion, residential mortgages are equivalent to 75% of Canada’s GDP. Nearly 60% of Canadians are homeowners, and 60% of those have mortgages!

⚠️ Challenges Ahead: 🏦 Mortgage rates are at multi-decade highs, putting pressure on households. 📉 High household debt levels make many Canadians vulnerable to economic downturns. 💸 Rising rates mean more income is going towards mortgage payments, squeezing consumer spending.

📈 Market Trends to Watch: 💡 Non-bank lenders are gaining market share with competitive rates and flexible terms. 📲 Digital platforms and AI are revolutionizing the mortgage approval process. ⏳ A shift towards shorter-term and variable-rate mortgages is taking place.

Staying informed is key! If you have questions or need guidance in navigating this complex market, reach out—I’m here to help! 💬📞 (437-484-3273)

Published by: GurmaanMortgages

g.gurjantsingh@dominionlending.ca