Recently, Wealth One Bank of Canada’s Chief Risk Officer, Paul Akey, and the three Chief Risk Officers of Canada’s mortgage default insurer’s, Nadine Leblanc from Canada Mortgage and Housing Corporation (CMHC), Craig Sweeney from Genworth and Curtis Gergley-Garner from Canada Guaranty Mortgage Insurance discussed the impact of the pandemics on the mortgage industry, and shared some insights on the overall trends in Canadian mortgage marketplace from the CRO perspective at the Canadian Mortgage Insurer Market Overview webinar presented by Credit Scoring and Risk Strategy Association (CSRSA). More than 500 people participated in this webinar.
The panelists agreed that there are definitely fluctuations in the Canadian housing market related to the pandemic. Looking ahead, the panelists are looking to Q1-21 as a key point of interest to set the tone for the mortgage market next year. Q1 next year will likely represent a timeframe when government subsidy programs expire, which along with the end of payment deferrals could impact delinquencies.
Some specific points of interest to panelists were over supply in the rental market, oil-dependent regions (double impacted) and markets dependent upon immigration, including foreign students. It was noted that a majority of people have reduced their utilization of revolving products probably linked to a decrease in spending. The net result is consumers are saving and paying down debt.
When asked about the key risk going forward for Canadian mortgage marketplace, the impact of climate change, assets bubbles created by ongoing low mortgage rates, and immigration policies were all mentioned.
The discussion ended with interest in a follow up session next year, hopefully post COVID.
Click here to view the recording of the entire webinar. (After you click on the link you will need to register with CSRSA with no cost. Then you will need the following password to access the recording: !VsX2.*M)