Saskatchewan pays its housing debts the least regularly

by Ephraim Vecina on 07 Nov 2019

With the missed payments rate at a level more than three times higher than the national average, Saskatchewan is the worst in Canada when it comes to paying mortgages on time, according to the Canadian Bankers Association.

As of mid-year 2019, the province’s arrears rate stood at 0.86%, which was the highest nationwide. This translated to 1,118 mortgages in arrears for three or more months, out of the 130,106 total mortgages in Saskatchewan at the time.

To compare, the national average arrears rate in this period was 0.23%. The rate was just 0.14% in BC, 0.35% in Manitoba, and 0.5% in Alberta.

This is because many Saskatchewan home owners fell into the trap of excessive borrowing, University of Regina economics professor Jason Childs stated.

“If you are at your maximum carrying capacity for mortgage debt, but your wage stops rising and all of these other things go up, you can get yourself into trouble really fast,” Childs told CKOM.com.

The phenomenon stemmed from sustained low interest rates in the years after the 2008-09 financial crisis.

“That made borrowing really, really attractive. So it made people take on a lot of consumer debt and a lot of household debt that might not have otherwise,” Childs explained, adding that consumer demographics played a major role.

“Saskatchewan is relatively young, and comparison to British Columbia I think is kind of silly, because BC has a much older population. The older you are, the less likely you are to be taking on mortgage debt.”

Post a Comment

Most Trending News

Expect rise in attempted mortgage fraud: broker
News

According to a recent Equifax survey, 9% of respondents admitted they weren’t fully truthful on their mortgage applications and that Millennials were more comfortable with the idea of falsifying information.

Read More
These condo units offer investors the best bang for their buck
News

Investing in a smaller unit like a studio condominium may be the safest bet for investors in an expensive market like Toronto. According to these experts, here's the cash flow you can expect to see.

Read More
Pandemic containment measures in Canada caused job losses and a rise in the unemployment rate in Apr
News

Following the third wave of COVID, Statistics Canada released a labour survey outlining that both part-time and full-time employment declined.

Read More