Mortgage growth in Canada is the slowest in over two decades

  • Residential mortgage credit rose 3.2% YoY, weakest since 2001.
  • Bank of Canada’s rate hikes are cooling household borrowing and restricting spending and property purchases.
  • Elevated borrowing costs make homes unaffordable, similar to the early 1990s.
  • Home equity line of credit balances fell 3.4% YoY.
  • Canada has the highest household debt among G7 countries.
  • Economists expect Bank of Canada to cut rates in Q2 2024.
  • Traders in the swaps market bet on policy rate cut by June 2024…