Canadians Mortgage Payments Rising Too Quickly, CMHC Says

In Toronto, the average scheduled monthly mortgage payment for new loans rose from $1,269 one year ago to $1,328 in the fourth quarter of 2016, according to Canada’s federal housing agency.

As house prices went up, the monthly mortgage payments also increased, specifically in Vancouver, Toronto and their surrounding cities.

The fact that the average scheduled monthly payment is growing faster than inflation is a cause for concern because it suggests that homeowners could struggle to make their payments going forward, says Canada Mortgage and Housing agency.

During the fourth quarter of last year, Toronto’s monthly mortgage payment increased by 1.15 percent from $1,638 the year before, to $1,826.

Vancouver’s, as well, went up 4.5 percent from $1,853 in the fourth quarter of 2015 to $1,936.

According to the Canada mortgage and housing corporation (CMHC), mortgage delinquency rates during the fourth quarter of 2016 were 0.34 percent nationwide compared with 0.35 percent a year earlier, per data acquired from credit monitoring agency Equifax.