About one in five mortgage loans in Alberta remains on hold, the highest rate of any province in the country, according to the Canada Mortgage and Housing Corporation.
CMHC President and CEO Evan Siddall said in a tweet Tuesday that in July 21% of mortgages in Alberta were deferred.
The second highest deferral rates were found in Saskatchewan and Newfoundland, tied at 14.8%.
“Carry-overs in oil-producing regions are obviously high,” he wrote.
Quebec had the lowest rate at 5.6%.
Other data on carry-over rates @CMHC_ca, with most July data, by province: AB – 21.0%, SK – 14.8%, NL. – 14.8%, BC – 11.1%, ON – 10.1%, 3 territories – 9.9%, NS – 9.9%, MB – 9.6%, NB – 9.3%, PEI – 8.4%, QC – 5.6%. Carry-overs in oil-producing regions are clearly high.
Siddall said about 11% of all homeowner-insured mortgages are deferred across the country, and factors such as unemployment rates and government supports will play a role in deferrals and house prices. in the future.
Low oil prices had hit the Alberta economy hard before the coronavirus pandemic.
The Conference Board of Canada forecasts Alberta will see its economy shrink by a historic rate of seven percent this year.
Justin Havre of RE / MAX says the carryover figures in Alberta are not so surprising.
“I think Albertans have gone through difficult times,” said Havre.
“We usually don’t have the ability to defer mortgage payments when there’s a collapse in energy payments and when the opportunity has arisen to get deferred mortgages here in Alberta, I think a lot of people took the opportunity to save their money because no one really knew with this pandemic how long it would last and what was going to result. “
Havre said he would encourage anyone having difficulty making payments to be proactive and speak with their bank and insurer.
“Don’t wait – act now to find a solution, and if the solution is to be for you to put your house on the market, then you might want to start acting now while we have the activity in the market, because that our market generally slows down when snow hits the ground. ”
In May, Siddall warned a House of Commons committee that the country could see a “postponement cliff” when some unemployed people have to start paying their mortgages again this fall.