Average Scheduled Monthly Payments for New Mortgages In Canada’s Two Most Expensive Housing Markets Surge to New Heights
Monthly mortgage payments for new mortgages lent out in the two most expensive real-estate markets in Canada increased once again in Q4 2023, according to new data from the Canada and Mortgage Housing Corporation (CMHC) released quietly this week.
Average New Mortgagor in Toronto is Paying $3,366 per Month
High interest rates and high housing prices are finally starting to take their toll — the average payment for a new mortgage loan moved up to $3,366 per month in the Toronto census metropolitan area. (This is how the CMHC divides up jurisdictions.)
This is a an increase of exactly $200 per month from the previous quarter, and an increase of $429 per month from a year earlier.
Using some pretty boring amortization math, we can deduce that the average new mortgage value in Toronto in Q4 2023 was likely to be near $561,704.
Average New Mortgage Loan in Vancouver Now Costs $3,361 per month
Average monthly costs for a new mortgage loan in Vancouver jumped up to $3,361 per month in Q4 2023, up from $3,152 one quarter earlier. An increase of $209 per month.
Average monthly mortgage payments were also up $391 per month from a year earlier.
As such, we can deduce that the average new mortgage value in Vancouver in Q4 2023 was, therefore, likely to be near $560,869.
Overall, this data suggests that new mortgagors are facing the same fate as renters, with shelter costs spiking in the 8-10% per year range regardless of whether they decide to buy or rent.
There’s More!…. HELOC Monthly Payments Hit New Record High In Canada
Not only did monthly mortgage payments increase, but Canadians borrowing against their homes are feeling the squeeze as well.
The average monthly minimum payment for Canadians with a home equity line of credit balance also increased in Q4 2023, moving up to $948 per month.
This increase represents an almost doubling of the average minimum HELOC payment within 3 years — from $486 per month in Q1 2021 to $948 per month in Q4 2023, according to CMHC data.
