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MNI BRIEF: Investors Mortgaging Record Share of Canadian Homes

Bank of Canada updates quarterly data on financial vulnerabilities.
Bank of CanadaCentral Bank NewsPolicy NewsHomepageCanadaBriefGlobalStoryRegionNorth America
MNI (OTTAWA)
Investors are taking out mortgages on a record share of Canadian homes, according to central bank data published Friday tracking financial system vulnerabilities, purchases that are also creating public anger about the high cost of living. 
Investors accounted for 30.45% of mortgaged purchases in Q1, up from 28.5% in the previous three months, the BOC calculated. The next highest figure in data going back a decade is from Q1 of last year when it was 29.9%. Investors accounted for 19.8% of the total a decade ago. 
First-time buyers made up 44% of mortgages in Q1, little changed from Q4 but down from 50.3% a decade ago. Younger buyers have struggled with average prices topping a million dollars in Vancouver and Toronto and the surge in interest rates through the pandemic. The Bank report said "during housing booms, greater demand from investors can add to bidding pressures and intensify price increases." (See: MNI INTERVIEW: More BOC Cuts Needed To Spark CRE- Morguard)
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MNI (OTTAWA)
Investors are taking out mortgages on a record share of Canadian homes, according to central bank data published Friday tracking financial system vulnerabilities, purchases that are also creating public anger about the high cost of living. 
Investors accounted for 30.45% of mortgaged purchases in Q1, up from 28.5% in the previous three months, the BOC calculated. The next highest figure in data going back a decade is from Q1 of last year when it was 29.9%. Investors accounted for 19.8% of the total a decade ago. 
First-time buyers made up 44% of mortgages in Q1, little changed from Q4 but down from 50.3% a decade ago. Younger buyers have struggled with average prices topping a million dollars in Vancouver and Toronto and the surge in interest rates through the pandemic. The Bank report said "during housing booms, greater demand from investors can add to bidding pressures and intensify price increases." (See: MNI INTERVIEW: More BOC Cuts Needed To Spark CRE- Morguard)