You wont BELIEVE this stat... Surrey Realtor speaks on mortgage defaults in Canada

When it comes to talking about real estate in British Columbia, people love to talk about the inevitable housing crash that is surely yet to come, or at least they think it's surely yet to come. Any of the keyboard warriors out there love to talk about the pending recession, the pending housing crash, and more so specifically, about how many people that may be bought during the peaks of the market are going to absolutely lose their shirts based on what's going to happen with pricing is going to be incredibly detrimental to the whole housing stock across the province. 

Now, while I'm no economist, what I can tell you is that I follow a lot of industry experts very closely, and today's video is all about sharing with you one statistic that I think is going to really impact how you think about what's going on with the BC housing situation and what it might mean for the future of housing in this province. Today's post is a relatively quick one, but let's get into it because you're going to love the content. Here we go.

So the stat I want to share with you today is how BC is seeing record low rears for mortgages. Record low compared to whenever they've seen them. And what is arrear? Well, that means homes that are going into foreclosure, or maybe that's a little preemptive, that's homes where people have not been paying their mortgage payments in arrears is typically generalized by not paying your payments for about 3 months. So BC is seeing record low arrears in their mortgages. And why is this important and why does this matter?

Well, essentially it matters because it tells you about the responsibility of both of our banking system and also of the people that are owning these homes. Now, let's put this into perspective a little bit here. As of March 31 of this year, in the entire province, there was 777 mortgages in arrears. This is out of over 711,000 mortgages coming in at 0.11%. That is obviously incredibly low.

And despite fears of rising interest rates and worsening affordability in the residential market, statistics from the Canadian Bankers Association indicates that mortgages are in arrears in BC are actually on the decrease. They really have been actually on a long term decline since about 2011, where they peaked at about 0.49%. In fact, BC's rate is the lowest in Western Canada in the entire country is in number 2 spot, second only to that of Ontario. This long term decline in Arrears in BC just shows the economic strength of our province. Now, of course, the market is changing and could change further, but there are reasons why we have such low mortgage arrears in not only the province, but also the country.

We have got incredibly high employment across the country, and BC is no different. BC is one of the best performing provinces economically and for jobs in the entire country. So this means we have a strong economy. We also have incredibly high banking standards when compared to that of maybe the United States, or even thinking back into the times where we went into the 2008 recession where banking standards were very lacked, specifically in the United States, which actually helped trigger the majority of the global downfall.

One of the beautiful things in Canada is our mortgages are also stress tested. If you're a regular watcher of our videos, you've heard me talk about this many times, so we won't jump into it here today. And one more fun number that I thought everybody would enjoy. And mind you, this is a US number from Freddie Mac out of the US. But roughly about 25% of people in 2021 alone refinanced their mortgage.

Now, the reason they did this was because of the ultra low mortgage rates, which means they likely are going to benefit from carrying these crazy low rates for at least the next five years, if not longer. So there you have it. We have record low mortgages in Arrears, which is a very good sign for the health of our housing market in BC. While TV economics forecast economic growth in BC to decline a little bit this year, this shows that we are still in a very healthy position for our real estate market because people can afford their payments. So there you have it, everybody.

That's what I wanted to share with you today. I would be interested in what you think is going to happen. Be sure to leave a comment below and let me know what you think about this post, the information in it, what's going to happen, or even any other things you would like to see us post about. 

I'm Darin Germyn with the Germyn Group. We know you've only got one chance to either buy or sell your next home, so we're here to help you get it right. Thanks for reading. We'll see you next time you.

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