Canadian residential mortgage debt hits $2.08 trillion: CMHC

Canada Mortgage and Housing says the country's total residential mortgage debt was $2.08 trillion as of January this year, up six per cent from January 2022.

However, the federal housing agency says in a new report that the rate of growth for mortgage debt slowed compared with recent years.

The report attributes the trend to inflation, rapidly rising interest rates and cooling housing markets, which have weakened consumer confidence and left fewer home buyers looking to buy.

Many are choosing to reduce their monthly debt servicing costs and opting for shorter-term fixed-rate mortgages because they expect interest rates to eventually drop.