18 December 2019

Canadian mortgage professionals may face slower pace, as Fitch expects only a 1% growth because of affordability issues and the influence of B-20 rules.

While CMHC keeps cutting its exposure to the market, smaller banks and non-bank lenders may face more difficulties, decreasing the overall availability of mortgage credit.

At the same time, though the US mortgage market is supported by the same fundamentals of the Canadian market, Fitch predicts an increase by 1.5% for the arrears of at least 3 months, which is still historically low.

Fitch expects a 3% housing prices gains in the U.S., supported by strong growth, a high household savings ratio and low mortgage rates. Nevertheless, the number will be restrained by slower GDP growth, cooling luxury real estate prices, and affordability issues.

Once again, we are reminding our readers that predictions are very interesting to read, however real life is much more complex than any economist can ever forecast. If you are thinking about becoming a home owner or looking to buy an investment or vacation property let us assess your personal situation and find the right financial solution!