Younger Canadians are outpacing older demographics in reducing their mortgage debt, new research from Statistic Canada has found.
The research shows that households aged 35 and younger are the only group to have cut their mortgage balances since late 2022. This contrasts sharply with the pandemic era when many young families increased their debt more rapidly due to much lower borrower costs.
However, this doesn’t necessarily mean younger borrowers are simply paying down their debts more aggressively.
The more likely cause for the reduction in mortgage balances among younger households, Statistics Canada suggests, is that many are opting for less expensive accommodations, while others are being shut out of the market altogether.
“Prospective homeowners may be turning away from the housing market because of affordability concerns, while existing homeowners may be paying off their existing mortgage balances or downgrading their accommodations,” the report notes.
Older households taking on more debt
In contrast, older households have experienced steady increases in their mortgage debt, driven by elevated interest rates and high housing costs.
As of the second quarter of last year, households aged 55 to 64 and 65+ saw their mortgage balances rise by 6.5% and 6.4%, respectively, year-over-year.
“Older households may be taking on mortgage debt for various reasons, such as buying an investment property or helping younger family members reduce their debt obligations,” the report says.
FSRA seeks feedback on the use of team names in mortgage brokering
The Financial Services Regulatory Authority of Ontario (FSRA) has launched a consultation on proposed guidance for the use of team names by mortgage agents and brokers in advertising.
The new guidance aims to “ensure clarity and accountability in the mortgage brokering sector,” FSRA said.
The proposal would mandate that all team advertising clearly display the name and license number of the authorizing brokerage to avoid consumer confusion.
The consultation, which is open until February 22, 2025, invites stakeholders to provide feedback on how team names can be used while maintaining transparency and compliance. FSRA says its goal is to “ensure that advertising practices are clear and fair for consumers.”
For more information or to submit questions or feedback, click here.
BlueShore Financial members approve merger to expand service offerings
BlueShore Financial members recently voted in favour of merging with Beem Credit Union.
The merger, which was announced after talks began earlier in 2024, will create a combined credit union operating under the legal name Beem Credit Union. During an 18-month transition period, BlueShore Financial will continue to operate as a division of Beem Credit Union, the company said in a release.
“By joining forces with Beem Credit Union, we are pleased to offer our members an expanded network of branches for personalized service across the province,” said Ian Thomas, CEO of BlueShore Financial. “This partnership allows us to invest more resources in digital services, provide ongoing training and career development for our employees, and increase our investment in the communities we serve.”
The merged credit union will serve approximately 190,000 members across Greater Vancouver, the Fraser Valley, the Interior and Northern B.C. With a network of 66 branches and insurance offices, the combined institution will have total assets under administration of approximately $17 billion.
BlueShore Financial was founded in 1941 as a credit union for fishermen and coastal communities.
Consumer confidence highest in Quebec, lowest in Ontario
Consumer confidence “remains in a holding patter,” accoring to the latest weekly survey by Bloomberg and Nanos.
The Expectations Sub-indice, which projects into the future, rose to 47.46 last week, up from the previous week but down from the 12-month average of 52.69.
Consumer confidence in Canada was highest in Quebec, with a score of 54.79, while Ontario recorded the lowest confidence at 46.61. Among different housing groups, confidence levels diverged as well, with renters seeing an increase to 50.23, while homeowner confidence declined to 49.29 last week.
Looking at specific measures of consumer confidence, sentiment on the Canadian economy improved to 11.72, but remains well below the 2008-2025 average of 20.31. Meanwhile, sentiment towards real estate deteriorated to 44.94, but still remains above the 2008-2025 average score of 40.35.
Mortgage snippets
- Bond yields end the week lower: The Canada 5-year bond yield ended the week at 2.980%, down 0.012 points, marking a 0.33% decline. The yield had fluctuated throughout the week, with the final drop occurring towards the end of the trading day.
- Cash-out refinances linked to improved credit scores, says CFPBA: A recent report from the U.S. Consumer Financial Protection Bureau (CFPB) reveals that borrowers who opt for cash-out refinance mortgages experience a significant initial surge in credit scores. While these scores gradually decline over time, they consistently remain higher than pre-refinance levels.
Between 2014 and 2019, more than 50% of cash-out borrowers used the funds to pay off other bills or debts. However, this dropped to 40% between 2020 and 2021, with the next most common use being home improvements.
- Trump says he’ll demand interest rates “drop immediately:” President Donald Trump has called for immediate reductions in interest rates, suggesting that global rates should follow the U.S. lead. He also urged oil-producing nations to lower oil prices, linking this to potential interest rate cuts. These remarks were made during his address at the World Economic Forum in Davos, Switzerland.
“I’ll demand that interest rates drop immediately,” Trump said. “And likewise, they should be dropping all over the world. Interest rates should follow us all over.”
Next Steps: Mortgage industry career moves
“Next Steps” is a feature in our Mortgage Digests that highlights notable job changes and career advancements within the mortgage industry. If you have a job update to share, we welcome your submissions to keep the community in the loop.
Youry Bissada departs Home Trust
As part of the recent merger between Fairstone Bank and Home Trust, it was announced that Home Trust CEO Yousry Bissada would transition to the role of Vice Chair of the Board.
In a social media post, Bissada reflected on his tenure as CEO, highlighting the challenges he and his team overcame, including the critical period when Home Capital Group was bailed out by U.S. investor Warren Buffett.
“As I leave my role as CEO at Home Trust and embark on my next chapter, I reflect on the incredible journey we’ve shared. From the moment I joined this team, it has been an honour to work alongside the amazing team at Home, our valued partners in the mortgage industry, the supportive shareholders, the various regulators and government agencies, the partner banks and the press who helped tell our story,” he wrote.
“I’m proud of what we have accomplished together and the exceptional work we’ve done with the ultimate goal of helping Canadians to get and keep their homes,” he continued.
He acknowledged the “remarkable milestones” achieved over the years, from delivering “exceptional” returns to shareholders and implementing best-in-class technology, to navigating the “storm of 2017” and rebuilding the company’s brand in the broker market.
“I often feel that we experienced in seven years what many organizations would need decades, if they’re lucky, to achieve,” he said. “I am filled with gratitude for the wonderful people I worked with and thank you all for being part of this team. I have shared a special bond with all of you. WE DID GOOD!”
Bissada continues to sit on the Board of the Princess Margaret Cancer Foundation.
Before joining Home Trust, Yousry Bissada held leadership roles as CEO of Kanetix Ltd., Chairman of Canadiana Financial and Paradigm Quest, and President/CEO of Filogix. He also held senior positions at TD Canada Trust, CIBC Mortgages, and Firstline Trust Company.
Dimitri Kosturos appointed CEO of VWR Capital Corp.
Dimitri Kosturos has been appointed CEO of VWR Capital Corp. after serving as President and COO for the past eight years.
Under the leadership team in which he was a part of, VWR expanded from $95 million to over $700 million in mortgages under administration from B.C. through Ontario.
Dimitri has been active in the industry, serving on the boards of the BC MIC Managers Association and the Canadian Alternative Mortgage Lenders Association, along with a Vancouver-based fintech. He also supports local causes through his work with the Shewan Foundation and the Langley Community Services Society.
Dimitri is a licensed mortgage broker in BC, Alberta, and Ontario and holds a Bachelor of Science in Computer Science from California State University, Los Angeles, with graduate studies at the University of Southern California.
Outgoing CEO Dougal Shewan will remain as Director and Chair of the Board.
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Last modified: January 25, 2025