KEEPING YOU INFORMED: COVID-19 information for residential customers & commercial borrowers
╲╱

Our residential call centre is experiencing higher than normal wait times.

If you are a residential customer experiencing financial hardship due to COVID-19 and need to request a mortgage payment assistance, please submit a payment assistance request through My Mortgage.

If you are a commercial borrower experiencing financial hardship due to COVID-19, please email our Payments team at commercial.payments@firstnational.ca.

Be assured that we are committed to getting back to all of you who have contacted us.

Your patience is appreciated, and we thank you for your understanding.

Close

Residential Market Commentary - week of March 20, 2017

Mar 20, 2017, 15:24 PM by Joelle Park

The average price of a house in Canada has now topped half-a-million dollars, an increase of 3.5% over February of last year.  Of course, the usual suspects are getting the blame.  At the same time the household debt to income ratio has also hit a new high.  But housing prices are not entirely responsible.

The latest numbers from the Canadian Real Estate Association put the average price of a house at a little less than $520,000, propped up by the Greater Toronto Area and Greater Vancouver.  When those two markets are taken out of the calculation the average price falls by $150,000 to just below $370,000 – a drop of nearly 30%.

Along with the CREA figures, Statistics Canada is reporting that household debt climbed to 167.3% of disposable income in Q4 of 2016, a new record high.  Most of that new debt, about two-thirds of it, is mortgage debt but there are other growing components.  Credit tracking agency Equifax reports both car loans and installment loans were up by nearly 8% last year, compared to 2015.

Equifax also reports that more Canadians, 46%, are paying down debt.  But it says the 37% who are taking on more, are adding larger amounts.  StatsCan reports the saving rate is up slightly from 5.2% to 5.5%.