Banks see first annual decline in mortgages for November

The number of mortgages held at large Canadian banks fell in November, hitting its first annual decline for the month since 1990.

Banks held 4,759,706 mortgages in November, down by 0.18% from the year before, according to the Canadian Bankers Association. The decline represents the fourth month the market has seen a negative annual pace of growth.

Compared to the previous month, banks held 3,755 more mortgages, but it was the second smallest month-over-month growth for November, next to 2017.

Ontario mortgages hit their slowest annual growth on record. Ontario represented 2,008,229 of mortgages in November, up by 0.03% from the year before, the smallest increase for the month in the province since 1990.

British Columbia mortgages were almost flat. BC represented 644,094 of mortgages in November, up by 0.02% from the previous year (equivalent to 154 mortgages). It was the second smallest annual increase for the month since 1990, next to 2016’s November figures.

Shrinking mortgage growth is something that the country has never seen before. The mortgage size is rising, but the actual number is falling below replenishment. With booming immigration and record sales over the past few years, it’s a strange trend, according to a Better Dwelling report.