Canadians are piling into mortgage debt

Canadians are getting into mortgages at more than double the historical pace hitting a total of $1.73 trillion in June of 2021.

The 1.2 percent rise between May and June is the fastest monthly increase since 2007.

A report from BNN Bloomberg says that this spike in mortgage debt is in retaliation to the high demand for homes that was brought on by the COVID-19 pandemic. The report also mentions that this was also partly allowed dude to lower interest rates.

As the market (hopefully) cools over the remainder of 2021 people will stop buying as many homes thus resulting in less mortgage debt. “There is normally a time lag between the sale of a home and the actual receipt of mortgage funds,” said Stats Canada in the Bloomberg report.

Source: BNN Bloomberg

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