Mortgage payment delinquencies up in the oil patch

Slow recovery in the oil sector will keep the economies of Alberta and Saskatchewan struggling for the foreseeable future, according to the latest numbers

Mortgage payment delinquencies up in the oil patch
The long-struggling provinces of Alberta and Saskatchewan have seen a significant growth in the number of mortgage payment delinquencies over the past year, latest data from officials revealed.
As reported by BNN’s Greg Bonnell, figures released by the Canada Mortgage and Housing Corporation (CMHC) on Monday (May 30) showed that the number of homeowners who are behind by 90 days or more in the payment of their CMHC-insured mortgages has grown (on a year-over year basis) by 40 per cent in Alberta and 45 per cent in Saskatchewan.
These numbers, which are updated as of March 31 this year, translate to arrears rates of 0.35 per cent in Alberta and 0.70 per cent in Saskatchewan. Meanwhile, the national arrears rate was stable at 0.34 per cent.
The provinces’ economies and per capita purchasing power are expected to remain reeling from the impact of the global oil price crashes, even though petroleum has seen gradual recovery recently.
“[This remains the] most significant risk to the outlook for the Canadian housing sector,” the CMHC stated in its Q1 report.
Despite the greater incidence of late payments and slower housing starts, however, the CMHC noted that low interest rates will continue to fuel record home sales volumes well into next year.