The State of Two Rates

Good morning,

While the variety of factors influencing Canadian housing markets continues to grow--ranging from the impacts of population aging, equity, and parents helping the kids get out of the basement, to income, affordability, and empty units--one indicator that we keep a close eye on is the mortgage arrears rate and how it tracks with other variables.

To this end, our latest interactive chart illustrates how the arrears rate moves with the unemployment rate in provinces across Canada. Click here to check out the data for your province.

Not surprisingly, there is strong historical relationship between unemployment rates and mortgage arrears rates. This is not a revolutionary statement when you realize that it's much easier to pay the mortgage when you're working than when you're not. It's also interesting to note that in virtually every province across the country we are currently enjoying arrears and unemployment levels that are well below historical long-run averages.