Risks in the Canadian Housing Market May Mean Rate Cuts Come Sooner

In 2016, the outstanding balance on Canadian residential mortgages was around $1 trillion. Fast forward six years and the balance has mushroomed to $1.45 trillion. Over the same period, the risk profile of Canada’s mortgage sector has deteriorated. In 2016, slightly more than half of Canada’s mortgages were insured and just 13% of all mortgages were uninsured variable rate mortgages.