STUDY: Canadian’s mortgage debt has nearly doubled since 1999
A recent study on Homeownership, mortgage debt and types of mortgage among Canadian families by Statistics Canada has found that the amount of mortgage debt has increased substantially since 1999.
The study, which focuses on data from 1999 to 2016 found that the median mortgage debt almost doubled in real terms for Canadian families, rising from $91,900 to $180,000.
And of course, it comes as no surprise that mortgage debt is responsible “for the majority of the increase in total family debt,” as mortgage debt accounted for 84 percent of the total increase in family debt.
Other findings in the study include that homeownership throughout Canada is actually on the rise, up three percent from the 1999 figure at 63 percent. This is largely due to the ageing population, as older people are more likely to own homes than their young counterparts.
Another telling find shows that between 1999 and 2016, the proportion of homeowners who had paid off their mortgage has declined, from 46 percent to 43 percent. This is all but exaggerated when one realizes that when the ageing population is excluded, that figure would fall to 36 percent in 2016, since older people are more likely to have paid off their homes.
Finally, the study found that families with a mortgage tend to have a fixed mortgage rates. Seventy-four percent had a fixed rate, while only 21 percent have a variable rate, and 5 percent have a combination rate.
To read the full report yourself, click here.