Regina shows highest number of mortgage delinquencies, lowest average credit score: CMHC
Published Thursday, August 22, 2019 12:21PM CST
Last Updated Friday, August 23, 2019 6:39PM CST
The Canada Mortgage and Housing Corporation (CMHC) released its report on consumer credit trends for the first quarter of 2019.
Due to downward pressure in housing prices and an increase in mortgages, mortgage delinquency rates are higher in both Regina and Saskatoon, with Regina having the highest rate of mortgage delinquency in the Prairies with 0.65 per cent.
Regina showed the lowest average credit score across the Prairies with 759. The highest average credit scores were in Winnipeg and Calgary with 765. Cities with the highest delinquency rates tend to have the lowest average credit score, and vice versa.
“The decrease in average weekly earnings of Albertans, the downward pressure on house prices in Saskatchewan, and higher mortgage rates all contributed to increased delinquency rates in Prairie CMAs,” Christian Arkilley, Senior Analyst of Economics for the CMHC said. “However, average credit scores remained excellent despite the increases in delinquency rates and higher average monthly obligations.”
Mortgage delinquency rates by loan origination amounts increase for loans less than $100,000. Delinquency rates range from 0.36 per cent in Winnipeg to 0.79 per cent in Regina. Delinquency rates typically went down as loan amounts went up in Regina and Saskatoon.
Despite a dip in the share of consumers with a mortgage in Regina, the city remains high across the Prairies at 32 per cent.