Mortgage debt a ‘ticking time bomb’ and a market rebound

A report from economists at Desjardins Capital Markets says Canada’s mortgage debt is “a ticking time bomb” and that the pain for mortgage holders has barely started.

Economists are issuing a dark warning, writes David Parkinson. A report from economists at Desjardins Capital Markets says Canada’s mortgage debt is “a ticking time bomb” and that the pain for mortgage holders has barely started.

The bulk of mortgages taken out during the pandemic, when rates were at their bottom, will hit renewal time in 2025 and 2026, when Desjardins forecasts homebuyers will face dramatic increases in their monthly payments.

Canadian housing market rebounds in April: The national home price index claimed 1.6 per cent to $723,900 from March to April, according to the Canadian Real Estate Association.

Home sales climbed by 11 per cent from March to April, reports Rachelle Younglai. Despite the market showing signs of rebound, the number of new listings was at a two-decade low last month.