You’ve probably heard over and over again that household debt in Canada is climbing to record levels.
And it’s probably not a surprise to you that mortgages due to the high cost of housing holds some blame there.
But did you know that the total amount of mortgage debt in Canada has nearly doubled in the last four years?
According to CAAMP the total national mortgage debt in 2008 was $664 billion. It now stands at a total of $1.2 trillion.
Over in the Vancouver Sun Barbara Yaffe sees this stat and seems to blame the little transaction fees for the high cost of housing.
But there’s a little four letter acronym conspicuously missing from her article: CMHC.
That would be the Canadian Mortgage and Housing Corporation, which has been flooding the market with insured mortgage money at a time of low interest rates.
So here’s the real question: Is Canadian mortgage debt so high because of our house prices, or are our house prices so high because of that mortgage debt?