A combination of a strong economy and a robust job market is elevating the purchasing power of working-age Canadians in Montreal and Québec City, according to a new analysis by the Canada Mortgage and Housing Corporation.
This has become a crucial factor in keeping delinquency rates in the 25 to 64 employment age range low. Unpaid mortgages of 90 days or longer accounted for only 0.29% of mortgages in Montreal and 0.24% in Québec as of Q3 2018.
“The Montreal and Québec areas have shown strong economic growth and particularly vibrant job markets in the last two years. This certainly contributed to the financial stability of households and supported their ability to make their mortgage payments on time (or less than 90 days late),” CMHC said.
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Indeed, mortgage delinquency rates in the two markets showed considerable stability over the 12 months ending September 2018.
In Montreal, the rate stood at 0.23% for mortgages with a value at origination of less than $100,000, and 0.30% for accounts involving $400,000 and greater.
On the other hand, delinquency in the Québec CMA was at 0.13% for accounts with origination values of less than $100,000, and around 0.63% for mortgages at $400,000 and greater.
Working-age Canadians also represent a clear majority of mortgage holders in both markets, CMHC added. Equifax data from Q3 2018 indicated that nearly nine out of 10 mortgage holders in Montreal and Québec were 25 to 64 years of age.
During the same quarter, the share of consumers holding mortgages was 29% in Montreal and 31% in Québec City.
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