Mortgages are the biggest chunk of the lending business. The red-hot housing market has ensured strong growth, not only in mortgages, but other home equity products as home owners borrowed more to upgrade their homes; the result of white-collar employees spending more time at home due to the pandemic. As a consequence of high real estate values, housing affordability is a major issue for first-time home buyers.

Housing prices have generally witnessed a steady climb over the last decade and a half; accelerating in the past few years. Low interest rates and high prices meant that Canadians racked up $193 billion in new mortgage debt during the pandemic, taking total household debt to a record $2.5 trillion. The mortgage market in Canada comprises the major banks and credit unions, alternative and private lenders and even some new fintech entrants. As home ownership remains a top priority for many, mortgages will continue to be the engine of growth in consumer lending.

Some more specific points from this Report include:

• Some 70% of consumers agree that using a mortgage broker is a smart way to get the best rates.

• Somewhat surprisingly, almost a fifth of 18-34s have a shared equity mortgage, as new solutions emerge to tackle affordability for first-time buyers.

• Consumer behaviours and attitudes related to mortgage financing. This Report examines areas such as purchase behaviours, financing behaviours, lender choice for mortgages, switching factors, preferred channels for mortgage-related activities and attitudes about mortgages and home ownership.

This Report was written between January 11 and February 11, 2022.