9 August 2018

That’s why the number of delinquencies is so small when home prices are growing, and even smaller amid the market bubble. Low delinquencies rate is more about the liquidity, than about borrowers.

CMHC says Toronto shows almost unchanged mortgage delinquencies with large loans over $400k. They are at the record low level of 0.08%. Moreover, it’s been varying within 0.07% and 0.08% limits for the previous six quarters already. In case of smaller mortgages, the number keeps falling under 0.11%. Meanwhile, expensive home sales have been slowing down in Toronto since 2017. More affordable properties are also showing slower sales, although the floor of pricing is still going up.