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People in Ontario are doing a great job at keeping up their mortgage payments. In fact, late payments are as low as they have been in the province since the 1990’s.
In an article from Better Dwelling, it shows the latest statistics from the Canadian Bankers Association in which it details that, although home prices are extremely high, homeowners are maintaining pace when it comes to making their mortgage payments.
Back in February of 2017, a mere 0.12% of mortgages were paid late, an incredible 20% drop from February 2016. To put this into perspective, it was a 66% decline from the 27-year average.
What does all this mean? Is it a good or bad thing?
The last time numbers were this low, the real estate market in Toronto crashed. For a period of 6-7 years in the early 1990’s, home prices were on the decline and fell as much as 27.6% from its highest point. This all happened with the number of mortgages in arrear around the same levels that they are today.
One reason that we may be seeing such low levels is the fact that demand is currently so high in our province. For example, if you anticipate that you may begin to fall behind on payments or realize that you can no longer afford your home, you can sell your home and have a buyer quickly save the day. However, when the market isn’t so hot and demand isn’t as high, what do you do? There is a greater chance that you fall behind on your mortgage payments.
Having an extremely low level of late mortgage payments across the province is a good thing, however, it is best to keep an eye on the situation and prepare for any changes. The market can’t stay as active as we have seen over the past year forever, and eventually, demand and prices will come down.
So, while it may seem like people can easily afford their mortgage payments each month today, it may not be the same case in one year or even six months from now.
If you’re looking at entering the real estate market, renewing a mortgage or seeking a Burlington second mortgage, consulting a mortgage broker at Loewen Group Mortgages is a great idea to help give you the advantage you need.
Contact a mortgage broker in Burlington today, like one from our team, and find out how we can help!