2020 Mortgage Forecasts: Defaults to Jump, Originations to Tumble, Sales to “Suffer”
There’s no doubt that Canada’s mortgage and real estate industries will suffer in the short term due to the impacts of the coronavirus pandemic. But how long will the pain last and how far out might the recovery be?
Those are questions being asked by many in the industry, and some have put forth their best guesses. Here’s a look at the latest mortgage-related forecasts for the remainder of 2020 and into 2021…
Mortgage Arrears to Rise in 2021?
So long as mortgage deferrals and government income assistance remain in place, no major increases are expected in Canadian mortgage arrears in the short term.
Once mortgage deferrals expire and fiscal stimulus supporting households starts to run out, the arrears rate could jump as much as 50%, peaking by Q1 2021, according to some forecasts.
Original Article Source Credits: Canadian Mortgage Trends, https://www.canadianmortgagetrends.com/
Article Written By: Steve Huebl
Original Article Posted on: May 5, 2020