A new analysis by real estate information portal Better Dwelling showed the waning popularity of traditional mortgages among would-be home buyers in the Greater Toronto Area, with originations of traditional lenders (such as banks) in the region falling by a significant 27.01% year-over-year in Q1 2017.<\/p>\n
Using data from the Bank of Canada to estimate dollar volumes, the first quarter of the year saw $24.46 billion in originations, which was 0.8% lower compared to the previous quarter.<\/p>\n
Better Dwelling also noted that traditional lenders issued 92.13% of mortgage dollar volumes in Q1 2018. This was noticeably lower that the 92.43% in the previous quarter.<\/p>\n
\u201cThe slight loss brings the total market share down by nearly 2 points since last year. The market share lost is being picked up by private lenders with steep mortgage rates,\u201d Better Dwelling wrote.<\/p>\n
Read more: <\/p>\n
Observers have noted that this market shift can be largely traced to B-20, which have pushed lenders towards private lenders that are not compelled to apply the stress test to borrowers.<\/p>\n
But Better Dwelling argued that this was not a convincing chain of events.<\/p>\n
\u201cNaturally, the industry is assuming buyers are trying to dodge stress tests,\u201d Better Dwelling stated. \u201cIt\u2019s a cute narrative, but it doesn\u2019t really make sense. Traditional lenders have been losing market share since before B-20 Guidelines were mandatory. More likely, less sophisticated money that couldn\u2019t qualify at traditional lenders, began to pour into the market.\u201d<\/p>\n
Overall, the total dollar value of mortgage originations in the GTA was a little over $26.55 billion in the first quarter of 2018, falling by 0.47% from the previous quarter and by 25.3% compared to the same time last year. This was roughly in lockstep with an observable decline in sales during the same time frame, analysts said.<\/p>\n
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Related stories:\u00a0<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":" A new analysis by real estate information portal Better Dwelling showed the waning popularity of traditional mortgages among would-be home buyers in the Greater Toronto Area, with originations of traditional lenders (such as banks) in the region falling by a significant 27.01% year-over-year in Q1 2017. Using data from the Bank of Canada to estimate […]<\/p>\n","protected":false},"author":5,"featured_media":21240,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/7895"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=7895"}],"version-history":[{"count":1,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/7895\/revisions"}],"predecessor-version":[{"id":21239,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/7895\/revisions\/21239"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/21240"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=7895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=7895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=7895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}