About $1 billion worth of mortgage payments were deferred each month during the pandemic, according to Canada Mortgage and Housing Corp. (CMHC).
Canada’s housing authority released the figures as part of its annual residential mortgage industry report, and they are based on Equifax Canada's estimate that the average monthly mortgage payment in Canada is $1,333.00.
CMHC also said that it expects fewer Canadians to get ahead on their mortgage payments this year, compared with 2019, a trend that will add to the national level of mortgage debt by the end of the year.
By the end of the second quarter, relatively few people were defaulting on their mortgages, although CMHC said it anticipates a rise in delinquent mortgages as deferral programs this fall.
CHMC's report comes as the financial industry is closely watching how homeowners react to resuming deferred mortgage payments.
CMHC's report suggested that, depending on how the lender accommodated them during the COVID-19 pandemic, about 20% of consumers said they were mulling moving their mortgages to a different lender. CMHC also said that after interest rates were cut this year, variable rate mortgages gained popularity in April and May.
