Mortgage Landscape in Canada

The Mortgage Landscape in Canada 2023: A Decade of Change

Introduction

The Canadian mortgage landscape has seen significant shifts over the past decade, with 2023 marking a pivotal year in this evolution. This article will delve into the current mortgage situation in Canada and the changes in fixed and variable interest rates over the last 10 years.

The Mortgage Situation in 2023

In 2023, the Canadian mortgage landscape experienced a shift. Despite a slowdown in new mortgage activity due to a slump in home sales in the first half of the year, outstanding mortgage debt continued to rise, particularly for uninsured mortgages ¹.

The government introduced the Canadian Mortgage Charter, aiming to help ‘vulnerable borrowers’ in these challenging times ². As of September 30, 2023, there were 5,065,516 mortgages in Canada, with 0.16% or 8,140 in arrears ².

Changes in Fixed and Variable Interest Rates

Over the past decade, the interest rates for mortgages have seen a general downward trend. The lowest 5-year fixed mortgage rate in history was 1.44% in 2021 ³. However, as of 2023, rates have begun to inch upwards from these historic lows ⁴. The market consensus for the Central Bank rate at the end of 2023 was 5%, signaling a potential trend for the coming months ⁵.

Tabular Representation

Table

Year	Fixed Interest Rate	Variable Interest Rate
2013	5.24%⁶	2.70%⁶
2014	4.79%⁶	2.70%⁶
2015	4.64%⁶	2.55%⁶
2016	4.64%⁶	2.40%⁶
2017	4.64%⁶	2.40%⁶
2018	5.34%⁶	3.15%⁶
2019	5.34%⁶	3.65%⁶
2020	4.94%⁶	2.15%⁶
2021	4.79%⁶	2.15%⁶
2022	6.04%⁶	3.40%⁶
2023	6.49%⁶	6.65%⁶

Conclusion

The mortgage landscape in Canada has undergone significant changes over the past decade. With the introduction of new initiatives like the Canadian Mortgage Charter and shifts in interest rates, 2023 stands as a notable year in this evolution. As we move forward, it will be interesting to see how these trends continue to shape the Canadian mortgage industry.