Richard Maddox

Highlights

• Mortgage lenders entered 2025 in a healthy position, but economic uncertainty is increasing risk to the residential mortgage market. At the household level, unemployment is the most common cause of late mortgage payments.
• Variable rate mortgages became the most popular mortgage type in early 2025, reaching 42% of new mortgages in February, as the premium for variable-rate mortgages largely disappeared. Terms between 3 and less than 5 years were also still popular with new borrowers (32%). This speeds up the impact of future interest rate changes on borrower payments.
• New borrowers have taken advantage of lower interest rates to reduce their monthly payments. They haven’t shortened their amortization periods to the levels prior to the increase in interest rates.
• Mortgage lending by the largest alternative lenders outpaced the growth of national mortgage credit in 2024. These lenders’ risk profile has increased moderately due to higher delinquency rates, leading them to increase their loan loss allowance.

https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/housing-finance/residential-mortgage-industry-report