Housing markets in Canada are inherently tied to the availability of inexpensive credit, with most homebuyers borrowing funds to make their purchases. The liquidity of mortgage markets and the creditworthiness of existing and future borrowers, among other factors, directly influence the health and robustness of housing markets.Article contentby Mortgage Professionals Canada explains the scale of such lending. Almost 6.
First-time homebuyers , representing almost 55 per cent of recent buyers, can benefit from mortgage insurance and put down only five per cent as a down payment, but the MPC report showed that they deposited 21 per cent on average since they were motivated to avoid the additional mortgage insurance costs.
The report also found that mortgage arrears in Canada were around 0.22 per cent as of November 2020. This ultra-low incidence of mortgage arrears during a pandemic-induced slowdown suggests that the government’s stimulus programs are working in protecting financially vulnerable households.
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