The Bankwatch

Tracking the consumer evolution of financial services

The size of the Canadian mortgage market approaches $1 trillion

The state of Canadian finances is still the envy of the world, yet there continue to be areas of concern that pop up.  This statistic caught my eye.  The trillion dollar figure works out to be $100,000 on average for every bankable household in Canada.  The average is deceiving though because there are many homes with no mortgages.

The other statistic there is that about 38% (although the numbers in the article do not add up) of mortgages are securitised and held by others as investments.  This could be hedge funds, pension funds and other investment funds.  Obviously any impact on the housing market as referred to in the article could have impacts on the value of those securities.

House is Banks’ next sore spot (in Canada)

Canadian households have about $1-trillion of home loans outstanding, the latest statistics from the Bank of Canada show. Of that amount, about $495-billion is held by the chartered banks on their balance sheets. A further $300-billion of mortgages mostly issued by the banks has been made into mortgage-backed securities.

Written by Colin Henderson

September 1, 2010 at 09:36

Posted in Uncategorized

One Response

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  1. There is an old adage, in exchange for a market up in the volume of the drop is a market can not be trusted. It is the mark of a market top. This does not mean that the Canadian housing market goes, but it is a sign that is. The same thing is happening in America at the top of the U.S. housing bubble, when prices continued to rise even though the volume fell off a cliff.

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    September 23, 2010 at 23:37


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