Eric  Glazenberg

Eric Glazenberg


Sutton Group-Admiral Realty Inc., Brokerage *

(416) 739-7200
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Fitch: Canadian Mortgage Performance To Remain Stable In 2020

Canadian mortgage lenders shouldn’t worry too much about the performance of their loans in 2020 according to a new report from Fitch Ratings.

TORONTO, December 18, 2019 - The firm says that performance should remain solid next year as strong employment, projected income growth, and low interest rates support mortgage performance across North America.

For Canada specifically, a slight increase to 0.3% is forecast, but this is near historic lows.

Canadian mortgage professionals may experience a sluggish pace though with Fitch calling for growth of just 1% due to affordability constraints and the continued impact of the B-20 lending restrictions.

With CMHC continuing to reduce its exposure to the market, smaller banks and non-bank lenders will find more financing challenges, reducing the overall availability of mortgage credit.

Home prices are expected to rise about 1% over the next two years on a nominal basis but real home prices will decline. 

US mortgage market:

By comparison, although the US mortgage market is supported by the same solid fundamentals of the Canadian market, Fitch expects arrears of at least 3 months to increase to around 1.5%, still low by historic standards.

The firm calls for US home price growth of 3%, just above CPI inflation, supported by solid job growth, a high household savings ratio and low mortgage rates, but tempered by slower GDP growth, cooling home prices in higher priced markets, and affordability constraints.

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