Higher interest rates are slowing mortgage borrowing but debt is still growing fast. Bank of Canada (BoC) data shows outstanding mortgage credit climbed in May 2022. Falling home sales are beginning to erode the pace of borrowing. Even with the minor slowdown, mortgage debt is likely to surpass the size of GDP soon.
Canadian Mortgage Debt Is The Equivalent of 98% of GDP
Canadian outstanding mortgage debt is reaching astronomical levels. Households owed $2.01 trillion of residential mortgage debt in May. It was 0.9% (+$17.4 billion) higher for the month, and 10.1% (+$185.0 billion) above the balance last year. It sounds like a lot of debt, but just how big is it? Mortgage debt is now 98% the size of GDP at basic prices.