Young Canadians’ mortgage balances are shrinking, but why?
For many, homeownership in Canada remains unattainable due to high prices and elevated mortgage rates, so how is it possible that the average mortgage balance is on a downward trajectory for young families?
According to TD Bank economist Maria Solovieva, one trend that has stood out for several quarters now in Statistics Canada’s Distributions of Household Economic Accounts is the steady decline in average mortgage balances of young families, even as mortgage debt has continued to rise for all other age groups.
Since the peak in Q3 2022, the average mortgage balance among households where the primary earner is under 35 years of age has fallen by $17,000.
Compared to Q1 2023, the reduction stands at $11,200. Over the same period, mortgage balances increased by $23,100 for households aged 55-64 and by $6,000 for those aged 65 and older.
