Reverse Mortgage CanadaBackward Mortgage Canada
Mortgage rates also rose by 18 percent among infant boomers between the ages of 54 and 72, down from a year ago, the reports said. At the same the number of mortgage loans to millionaires dropped by 19 per cent and the number of mortgage loans to Generation Z - the youngest home buyers - dropped by 22 per cent. 21 per cent year-on-year.
Declining among younger home buyers "suggests that the new mortgage regulations may have an impact on those who are either no longer qualified or not able to obtain the amount of mortgage they want or are just dying to see how the mortgage markets will respond to the new rules," said Trans-Union in Wednesday's Wednesday update.
However, the strong increase in mortgage rates among older adults indicates that this group could rely more and more on increasing home values to fund their retirements - or to fund larger acquisitions for other members of their family," said Matt Fabian, TransUnion Canada's senior vice president of research and advisory activities for mortgage clients. "Cause we don't see them accepting new homes, they either fund retirements through their homes or renovation, or they help to subsidise other members of the family," he said to HuffPost Canada.
Previously on HuffPost Canada: What are the reasons why mortgage interest is rising now? These mortgage numbers can only scratch the finish as they do not contain reverse mortgage or home equity line of credit offerings (HELOCs) - two choices preferred by older owners with lots of capital in their homes.
Without a HELOC and reverse mortgage, the proportion of mortgage loans taken out by Canada's oldest residents is still low - around 2.5 percent of the population. Canada's consumer lending rate is decelerating. In the second three months, the overall number of newly granted mortgage loans was 3. 8 percent in comparison to a year ago, but nonmortgage loans, as well as debit card and home loans, were 3. 9 percent higher.
Number of new mortgage loans fell by an impressive 17. Toronto's 6 percent in the first quarter saw a rise in mortgage rates as the Toronto municipality went through a housing adjustment, while Vancouver mortgage rates remained shallow and rose 0. 8 percent in a year. TransUnion also reported mortgage increases in Ottawa (up 8.4 percent) and Montreal (up 5.2 percent).
Fabian noted that indebtedness continues to fall, saying that Canadians are managing their overall debts well.