Canadian Mortgage Highlights in 2023

• A decline in home sales leading to a deceleration in new mortgage activity in the first half of 2023;

• Moving away from shorter mortgage terms;

• 3-to-5-year terms the most preferred choice;

• The extension of amortizations beyond 25 years for most newly issued mortgages;

• A shift towards longer repayment periods;

• Outstanding mortgage debt continued to rise, particularly for uninsured mortgages;

• The target rate was held at 5% for the remainder of the year.

• The Bank of Canada is determined to cool the economy and reduce inflation closer to the 2% range.

Reference:

• CMHC (2023): Insights from CMHC's Fall 2023 Residential Mortgage Industry Report

• Altrua Financial