From CMHC

In this Fall 2022 edition, we find the following:

Recent mortgage market trends

• Mortgage growth slowed down as interest rates hiked in the second quarter of 2022.
• Mortgage consumers are increasingly turning back to fixed rates as interest rates rapidly increase and the discount on variable interest rates vanishes.
• Declining ratios of mortgage loan approvals to applications show it is increasingly difficult for potential borrowers to get qualified for loans subject to the stress test.
• The share of mortgages in arrears (i.e. delinquent for 90 days or more) have continued to trend downwards across all types of lenders.

Housing Finance Research at-a-glance

• In the third quarter of 2022, consumers without a mortgage registered notable delinquency rate increases in auto loans and credit cards.
• Mortgage lending growth by alternative lenders outpaces conventional lenders. Their portfolio metrics indicate a decreasing risk profile.
• Mortgage borrowers in the alternative lending space are more likely to renew their loans as it becomes harder to qualify with traditional lenders.

https://assets.cmhc-schl.gc.ca/sites/cmhc/professional/housing-markets-data-and-research/housing-research/research-reports/housing-finance/residential-mortgage-industry-report/2022/residential-mortgage-industry-report-fall-2022-en.pdf?rev=239fc8ea-a885-430f-97fe-dd700161d872