Even while the term “mortgage default” can evoke sentiments of fear, despair, and doom, a recent Equifax study shows a (relatively) favorable swing. The third quarter of this year saw a 9.5% annual growth in delinquent mortgage holders in Canada, according to the worldwide consumer credit reporting organization. This is a decrease from the previous quarter’s 11.7% annual increase.

“Looser-than-expected financial conditions” is one of two main reasons why the pressure on homeowners has decreased. Variable mortgage rates, decreased more due to strong competition from lenders.

At its next meeting on December 11, the Bank of Canada is expected to lower interest rates by an additional 50 basis points, according to economists. This will be the fifth straight trim to the easing cycle, which began in June when rates were at 5%. Right now, their percentage is 3.75 percent. By June 2025, economists anticipates rates to reach 2.25 percent.

In light of the “hotter than expected” inflation data, TD economists are recommending a 25 basis point decrease next month. However, RBC economists are unfazed by the CPI spike and are sticking to their base-case projection, which calls for a 50 basis point decrease to the benchmark rate in a few weeks.

Based on these stats, looks like housing market is poised to bounce back. At H.R.E.E.M (Hamilton Real Estate Management) your property is our priority. If you are thinking about buying in the short-term or long-term, feel free to send us a message.