Toronto real estate leads the country for multiple mortgages on a single property.
When real estate prices spiked across Canada in 2017, so did the number of homeowners taking out multiple mortgages.
According to Canada Housing and Mortgage Corporation (CMHC), over one in 10 mortgages issued in the country are issued on top of a pre-existing mortgage. Nearly half of those mortgages are in Toronto, Montreal and Vancouver.
The CMHC defines multiple mortgage holders as people who took out a new mortgage on a home with at least one existing mortgage. And its numbers only include loans with a balance increase of more than 10 per cent.
So, it’s possible that the total number of multiple mortgages is higher than these already high numbers …
Last year in Toronto, 28,364 new loans were issued on already mortgaged properties. That is up 6.4 per cent from the year before — and the trend of its growth is forecast to rise.
Montreal finds itself in a distant second from Toronto. In 2017, 18,270 new loans issued on already mortgaged properties in that hot real estate market, up four per cent year-over-year.
And Vancouver’s multiple-mortgage seekers are actually dropping. Last year there were 12,597 new loans on already mortgaged properties, which is a decrease of seven per cent from the year before.
All in all, multiple mortgages are on the rise in Canada, with 145,013 new loans issued on already mortgaged homes in 2017.