The recent Canada Housing and Mortgage Corporation (CMHC) report showed that over 1 in 10 mortgages in the country are issued to homes that are already on multiple mortgages, and around half of those can be found in just three major cities, as reported by Better Dwelling.
2017 saw a total of 145,013 new loans being issued on already mortgaged homes – which accounted for 15.12% of new loans over the year – a 4.16% increase from 2016.
Interestingly, this mostly happened in three cities – Toronto, Vancouver, and Montréal.
Toronto real estate held the number one spot in Canada for multiple mortgages on a single property, with 28,364 new loans issued on already mortgage properties in 2017. This saw Ontario’s capital register a 6.4% growth in this area from 2016.
“This represents 17.4% of all originations in the city, a 2.6% increase of market share from the year before that,” according to Better Dwelling.
In second was Montreal with 18,270 new loans issued on already mortgaged properties last year – a four percent increase.
“This represents 17.4% of mortgages in the city, a 2% increase in market share from the year before.”
The third spot belonged to Vancouver. While the city had 12,597 new loans issued on already mortgaged properties in 2017, Vancouver’s numbers actually represented a 7% decrease from 2016.
“This represents 18.1% of mortgages in the city, a 2.2% increase in market share from the year before.”
As such, the volume and market share of multiple mortgages is on the rise in Toronto and Montreal, while the volume is decreasing for Vancouver. British Columbia’s capital, though, is seeing an increase in the share of total originations coming from already-mortgaged homes.