Latest news with #RebeccaOakes
Hamilton Spectator
7 days ago
- Business
- Hamilton Spectator
Ontario's record-setting mortgage delinquencies ‘enormously concerning'
More Ontarians are missing mortgage payments than at any time since Equifax started tracking them in 2012, according to new data from the credit agency. 'Delinquencies are really still rising on the mortgage side,' said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada. 'We're still very concerned about those.' Ontario's 90-plus day mortgage delinquency rate rose 71.5 per cent since the first quarter of 2024, to 0.24 per cent from 0.14 per cent. Alison Kemper, an associate professor at Toronto Metropolitan University's Ted Rogers School of Management, called this 'enormously concerning.' There's not enough missing middle housing in between larger detached homes and small condo units, prices are still very high, and what is being build is aimed at investors, she added. So people end up taking on huge debts to find a decent place to live. 'The first thing you make sure you do in life is to pay your mortgage, but people aren't doing that, because the whole system is so broken now,' she said. Nationally the mortgage delinquency rate is at the highest level since 2016-2017. The mortgage stress test introduced starting in 2016 brought down missed payments, but now those numbers are creeping back up again despite the fact it's still in place, Oakes said. This is because of all the mortgages opened during the pandemic with high balances and low rates. 'Now you're seeing people coming off those low rates. And it's a challenge,' Oakes said. She added Ontario is likely dealing with more missed payments because of high home prices, particularly in the GTA, and a rising unemployment rate. Due to its close ties to the U.S., the province is also more vulnerable to economic uncertainty around the ongoing trade war. The mortgage delinquency rate is always a relatively small number, she said, because mortgage payments are typically the last thing to go when Canadians face financial hurdles. They will miss other payments on things like credit cards and cars before putting their homes at risk. Nationally, missed payments continued to rise on credit cards, and more than 1.4 million consumers (1 in 22) missed at least one credit payment during the first quarter of the year. New mortgage originations were up 66 per cent in the first quarter of 2025 compared to the same time last year in Ontario, and about 58 per cent nationally. But Oakes said this reflects people shopping around for better rates, as part of the 'Great Renewal' of pandemic era mortgages. More than a million mortgages are set to renew in Canada this year and borrowers are facing much higher monthly payments. Victor Tran, a RATESDOTCA mortgage and real estate expert, said it's worth it to look for a better rate as even a small difference means you'll save money. With sales down, banks and brokers are all competing for the best renewal rates, even offering incentives like cash back or credit card points. 'It's almost a race to the bottom,' he said. Interest rates are down somewhat but mortgage rates are also tied to the bond market, which has been impacted by the economic uncertainty surrounding the U.S. Trump administration and the ongoing trade war. As bond yields increase, fixed rates will follow suit, Tran said. That's why it's a good move to lock in a pre-approval, whether you're renewing, or planning on buying a home. As for those looking to purchase their first home, the picture is still not exactly rosy, Oakes said. New mortgages for first-time buyers in Ontario were up about 38 per cent in the first quarter of 2025, but that's more of a recovery from losses over the last two years. 'You know, 12 months ago, it was at very low levels. So it's up, but kind of from a low point,' said Oakes. 'Yes, the interest rates coming down means payments are coming down a bit. But actually the average loan size is still increasing. So it's not great if you're first-time home buyers still at all.'
Toronto Star
28-05-2025
- Business
- Toronto Star
Ontario's record-setting mortgage delinquencies ‘enormously concerning'
More Ontarians are missing mortgage payments than at any time since Equifax started tracking them in 2012, according to new data from the credit agency. 'Delinquencies are really still rising on the mortgage side,' said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada. 'We're still very concerned about those.' Ontario's 90-plus day mortgage delinquency rate rose 71.5 per cent since the first quarter of 2024, to 0.24 per cent from 0.14 per cent. Alison Kemper, an associate professor at Toronto Metropolitan University's Ted Rogers School of Management, called this 'enormously concerning.' There's not enough missing middle housing in between larger detached homes and small condo units, prices are still very high, and what is being build is aimed at investors, she added. So people end up taking on huge debts to find a decent place to live. 'The first thing you make sure you do in life is to pay your mortgage, but people aren't doing that, because the whole system is so broken now,' she said. Nationally the mortgage delinquency rate is at the highest level since 2016-2017. The mortgage stress test introduced starting in 2016 brought down missed payments, but now those numbers are creeping back up again despite the fact it's still in place, Oakes said. This is because of all the mortgages opened during the pandemic with high balances and low rates. 'Now you're seeing people coming off those low rates. And it's a challenge,' Oakes said. She added Ontario is likely dealing with more missed payments because of high home prices, particularly in the GTA, and a rising unemployment rate. Due to its close ties to the U.S., the province is also more vulnerable to economic uncertainty around the ongoing trade war. The mortgage delinquency rate is always a relatively small number, she said, because mortgage payments are typically the last thing to go when Canadians face financial hurdles. They will miss other payments on things like credit cards and cars before putting their homes at risk. Nationally, missed payments continued to rise on credit cards, and more than 1.4 million consumers (1 in 22) missed at least one credit payment during the first quarter of the year. New mortgage originations were up 66 per cent in the first quarter of 2025 compared to the same time last year in Ontario, and about 58 per cent nationally. But Oakes said this reflects people shopping around for better rates, as part of the 'Great Renewal' of pandemic era mortgages. More than a million mortgages are set to renew in Canada this year and borrowers are facing much higher monthly payments. Victor Tran, a RATESDOTCA mortgage and real estate expert, said it's worth it to look for a better rate as even a small difference means you'll save money. With sales down, banks and brokers are all competing for the best renewal rates, even offering incentives like cash back or credit card points. 'It's almost a race to the bottom,' he said. Interest rates are down somewhat but mortgage rates are also tied to the bond market, which has been impacted by the economic uncertainty surrounding the U.S. Trump administration and the ongoing trade war. As bond yields increase, fixed rates will follow suit, Tran said. That's why it's a good move to lock in a pre-approval, whether you're renewing, or planning on buying a home. As for those looking to purchase their first home, the picture is still not exactly rosy, Oakes said. New mortgages for first-time buyers in Ontario were up about 38 per cent in the first quarter of 2025, but that's more of a recovery from losses over the last two years. 'You know, 12 months ago, it was at very low levels. So it's up, but kind of from a low point,' said Oakes. 'Yes, the interest rates coming down means payments are coming down a bit. But actually the average loan size is still increasing. So it's not great if you're first-time home buyers still at all.'
CBC
27-05-2025
- Business
- CBC
1.4 million consumers missed a credit payment in Q1, says Equifax report
There's a deepening divide between consumers in the face of economic uncertainty as those missing payments rose compared with a year ago, a new Equifax report shows. Rebecca Oakes, Equifax Canada's vice-president of advanced analytics, said much of the trend stems from the high cost of living, growing unemployment and rising trade tensions. "In order for anybody to kind of keep making the payments, you need to have an income, you need to have good employment," said Oakes. "When there's economic uncertainty, that does create a few impacts." The report found one in 22 consumers, or 1.4 million people, missed at least one credit payment during the first quarter, even as the average monthly credit card spend fell by $107 per cardholder. "We actually think this is more to do with pulling back on that discretionary spend. And that is going to have a knock-on impact to business and that ultimately will have a knock-on impact to employment levels," she said. "It's all kind of interlinked a little bit when you start to see that economic uncertainty." Credit card delinquency rates up among young people The report said consumer-level delinquency rates among non-mortgage holders rose 8.9 per cent year over year, compared to 6.5 per cent for mortgage holders. Average non-mortgage debt per consumer rose to $21,859 in the first quarter, the report said, mainly driven by a strong auto loan market as buyers looked to lock in car purchases before prospective tariff-induced price hikes. Younger consumers appear to be having a tough go, the report showed. Credit card delinquency rates among that cohort was 5.38 per cent, up 21.7 per cent year over year. "If you have got credit commitments and your day-to-day living costs go up or it's harder to get employment, or maybe your incomes haven't risen at the same amount as cost of living, then it's just harder to keep making the payments that you've committed to," Oakes said. The total consumer debt grew to $2.55 trillion in the first three months of 2025, up four per cent year over year, but down more than $6 billion from the end of 2024, the report showed. A high number of mortgage renewals also added to increased levels of debt. Many homeowners who locked in low interest rates at the beginning of the COVID-19 pandemic are looking at mortgage renewals, which Oakes called "the great renewal." Ontario became a hot spot of financial stress during the first quarter, the report showed. The province's 90-plus day mortgage delinquency rate surged to 0.24 per cent since last year. "We are just seeing missed payments linked to consumers that have a mortgage in Ontario go up and up," Oakes said.
Toronto Star
27-05-2025
- Business
- Toronto Star
Ontario mortgage delinquencies at highest level ever recorded, Equifax says
More Ontarians are missing mortgage payments than at any time since Equifax started tracking them in 2012, according to new data from the credit agency. 'Delinquencies are really still rising on the mortgage side,' said Rebecca Oakes, vice-president of advanced analytics at Equifax Canada. 'We're still very concerned about those.' Ontario's 90-plus day mortgage delinquency rate rose 71.5 per cent since the first quarter of 2024, to 0.24 per cent from 0.14. Nationally it's at the highest level since 2016-2017. The mortgage stress test was introduced starting in 2016, which brought down missed payments, but now those numbers are creeping back up again, despite the fact that it's still in place, said Oakes. This is because of all the mortgages opened during the pandemic with high balances and low rates. 'Now you're seeing people coming off those low rates. And it's a challenge,' Oakes said. She added that Ontario is likely dealing with more missed payments because of high home prices, particularly in the GTA, and a rising unemployment rate. Due to its close ties to the U.S., the province is also more vulnerable to economic uncertainty around the ongoing trade war. The mortgage delinquency rate is always a relatively small number, she said, because mortgage payments are typically the last thing to go when Canadians face financial hurdles. They will miss other payments on things like credit cards and cars before putting their homes at risk. Nationally, missed payments continued to rise on credit cards, and more than 1.4 million consumers (1 in 22) missed at least one credit payment during the first quarter of the year. New mortgage originations were up 66 per cent in the first quarter of 2025 compared to the same time last year in Ontario, and about 58 per cent nationally. But Oakes said this reflects people shopping around for better rates, as part of the 'Great Renewal' of pandemic era mortgages. More than a million mortgages are set to renew in Canada this year and borrowers are facing much higher monthly payments. Victor Tran, a RATESDOTCA mortgage and real estate expert, said it's worth it to look for a better rate as even a small difference means you'll save money. With sales down, banks and brokers are all competing for the best renewal rates, even offering incentives like cash back or credit card points. 'It's almost a race to the bottom,' he said. Interest rates are down somewhat but mortgage rates are also tied to the bond market, which has been impacted by the economic uncertainty surrounding the U.S. Trump administration and the ongoing trade war. As bond yields increase, fixed rates will follow suit, Tran said. That's why it's a good move to lock in a pre-approval, whether you're renewing, or planning on buying a home. As for those looking to purchase their first home, the picture is still not exactly rosy, Oakes said. New mortgages for first-time buyers in Ontario were up about 38 per cent in the first quarter of 2025, but that's more of a recovery from losses over the last two years. 'You know, 12 months ago, it was at very low levels. So it's up, but kind of from a low point,' said Oakes. 'Yes, the interest rates coming down means payments are coming down a bit. But actually the average loan size is still increasing. So it's not great if you're first-time home buyers still at all.' Alison Kemper, an assistant professor, at Toronto Metropolitan University's Ted Rogers School of Management, said tktktk 'it's enormously concerning' people need housing, just heard the King talk about it this morning 'there's no stability over time in interest rates, and there's pretty small amount of stability in the price of housing' 'most of us are not financial wizards that can foresee these things' 'it's enormously problematic that you have to call the shots perfectly to be able to have a place for you and your family to live securely.' 'we're not builindg what we need we only build income properties' 'people are paying such an inflated amount of their income as rent.' 'The first thing you make sure you do in life is to pay your mortgage, but people aren't doing that, because the whole system is so broken now.'
Toronto Sun
27-05-2025
- Business
- Toronto Sun
Equifax report says 1.4M consumers missed a credit payment in Q1
Published May 27, 2025 • 1 minute read Missed credit payments grew by four per cent in the first quarter of 2025, compared with last year, a report by Equifax shows. A Visa card is seen in Portland, Ore., Wednesday, May 15, 2024. Photo by Jenny Kane / THE CANADIAN PRESS A new Equifax report says there's a deepening divide between consumers in the face of economic uncertainty as those missing payments rose compared with a year ago. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The report finds one in 22 consumers, or 1.4 million people, missed at least one credit payment during the first quarter, even as the average monthly credit card spend fell by $107 per cardholder. However, it says consumer-level delinquency rates among non-mortgage holders rose 8.9 per cent year-over-year, compared with 6.5 per cent for mortgage holders. Equifax says younger Canadians were hit hardest, with a 15.1 per cent increase in delinquency rates for the 18-to-25 age group. The report says total consumer debt grew to $2.55 trillion in the first three months of 2025, up four per cent year-over-year, but down more than $6 billion from the end of 2024. Equifax Canada vice-president of advanced analytics Rebecca Oakes says despite a slowdown in demand for non-mortgage debt, overall balances remained fairly flat, an indication that consumer payment levels may be falling. Ontario Columnists Other Sports Relationships Sunshine Girls
