monthly market insights...monthly market insights july 2020 mortgage registrations by property type...

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Monthly Market InsightsJuly 2020

Our industry is experiencing a difficult period full of uncertainty and change. Recently, we heard from our valued partners and customers that you have questions about the state of the market. With our authoritative data, we aim to highlight industry trends on a monthly basis through the Teranet Monthly Market Insights Report. These monthly publications will investigate trends related to lender market share and provide analysis of mortgage registration activity across Ontario compared to previous years.

As of June 2020, there were 41,900 residential mortgage transactions, which was a decrease from the 45,500 transactions in 2019 and 45,100 transactions in 2018. There was however an increase in the number of mortgage registrations from the previous month, which saw a volume of 39,400. While the volumes are lower than the same time in the previous two years, June experienced the most mortgage registrations so far in 2020.

Within the first six months of 2020, there have been 233,460 mortgage registrations, representing a total dollar amount of $112.08 billion. This is a significant increase from the previous year, which saw a total dollar amount of $96.1 billion in the first six months of the year. In fact, mortgage registrations in 2020 represent a larger dollar amount than every year since 2012,

with 2017 as an exception, which saw a total dollar value of $124 billion worth of mortgage registrations in the first six months of the year.

Mortgage Registrations: Residential Properties

Jan

2018

2019

2020

25K

30K

35K

40K

45K

50K

55K

Feb Mar Apr May Jun Jul Aug

Registration Month

Tota

l Vol

ume

of R

egis

trat

ions

Sep Oct Nov Dec

Mortgage Registration Volume and Dollar Amount: Residential Properties (January to June 2020)

Tota

l Reg

istr

atio

ns

Tota

l Dol

lar

Amou

nt

0K 0B

20B

40B

60B

120B

100B

80B

2012 20122013 20132014 20142015 20152016 20162017 20172018 20182019 20192020 2020

300K

250K

200K

150K

100K

50K

278.90K

79.8B

223.62K

67.6B

213.15K

68.5B

244.09K

83.5B

262.93K99.5B

287.30K124.0B

227.50K97.4B

223.72K96.1B233.46K

112.0B

Data provided exclusively through LendView, powered by Teranet

When we look at mortgage registration volume by municipality, we can see that all of the top 20 municipalities in Ontario saw a decline in mortgage registration volume in June 2020 compared to June 2019. The only exception to this decline is Ottawa, that experienced a 2.2% increase in mortgage registration volume compared to the same time last year.

Windsor, Markham, Vaughan and Toronto experienced the largest declines of 32.9%, 27.2%, 20.3% and 20.3% respectively in June 2020. This is the third month in a row that Vaughan has experienced a decline in mortgage registrations compared to the same time in 2019, however this month’s decline of 20.3% was less than the decline of 25.7% seen in May. Markham experienced the most drastic change from May to June, with a decline from 1.2% to 27.2% compared to volumes at the same time in 2019.

While in May, we saw that all of the top 20 municipalities experienced a decrease in mortgage registration volume compared to the same time last year, the picture is different in June. Municipalities that experienced better mortgage registration volumes include Cambridge, Ajax, Richmond Hill, Guelph, Kitchener, Oshawa, Barrie and Ottawa.

From a lender perspective we can see that lenders in all categories, except Other Banks, experienced a decrease in mortgage registration volumes compared to June 2019. Other Banks experienced a 6.1% increase in mortgage registration volumes compared to the same time last year. While most lenders experienced a decrease in mortgage registration volumes compared to the same time in 2019, lenders in all categories saw an uptick in volume compared to May 2020.

Individual Lenders, Private Lenders and Credit Unions experienced the most significant decreases of 28.8%, 25.6% and 17.4% respectively. However, all of these lenders experienced better mortgage registration volumes compared to those seen in May 2020, which for the most part saw the worst registration volumes this year so far. The lenders that experienced the smallest declines were the Big 6 Banks with a decline of 2.8% and Other Banks which, experienced an increase of 6.1% compared to June 2019.

Monthly Market Insights July 2020

Mortgage Registrations by Municipality: 2020

Richmond Hill 17.9%

January

34.0%

February

-5.2%

March

-47.9% -22.2% -7.9%

April May June

Milton -11.4% -4.0% -23.9 -9.6% -2.5% -16.8%

Vaughan -1.8% 47.6% 13.3% -19.5% -25.7% -20.3%

Oshawa -6.2% -7.7% 29.3% -0.8% -11.9% -3.4%

Windsor 22.0% 20.2% 21.7% 2.1% -29.1% -32.9%

Hamilton 5.5% 19.2% 19.6% 3.7% -10.1% -13.0%

Kitchener 13.0% 15.2% 22.0% 6.3% -24.5% -3.8%

Oakville 8.2% 16.1% 24.7% 5.2% -4.0% -6.6%

Toronto -1.4% 18.4% 22.7% 23.6% -17.1% -20.3%

Cambridge 29.1% 28.7% 41.4% 11.7% -29.4% -13.6%

London 14.9% 12.7% 23.4% 14.7% -12.7% -13.1%

Barrie 17.9% 19.7% 33.4% 13.3% -1.0% -0.7%

Guelph 8.4% 10.1% 15.3% 13.5% -11.7% -7.4%

Whitby 37.2% 36.9% 19.8% 34.3% 16.1% -9.0%

Mississauga 14.4% -3.7% 15.4% 13.3% -12.2% -15.3%

Markham 10.7% -14.8% 58.0% 23.4% -1.2% -27.2%

Ajax 20.7% -1.2% 15.0% 16.6% -13.4% -10.8%

Ottawa 27.8% 43.2% 29.0% 26.3% -5.1% -2.2%

Brampton 14.9% 34.2% 24.0% 22.0% -5.4% -17.8%

Burlington 9.3% -1.3% 13.4% 41.1% -13.3% -17.5%

Mortgage Registrations by Lender Category

Individual Lenders

Private Lenders

Insurance Companies

Trust Company

Credit Union

Mortgage Finance Co.

Big 6 Banks

Other Banks

-8.6%

6.3%

-18.0%

-24.2%

-21.8%

-20.1%

-26.4%

-52.7%

-9.3% -10.9%11.7%

-6.1% -18.1%17.4%

-25.0% -37.4%-16.7%

-0.8% -7.4%-6.4%

-14.2% -23.7%-6.4%

-22.4% -27.3%-7.4%

-32.2% -37.3%-11.2%

-31.2% -22.9%-31.4%

1.5%

8.3%

23.2%

7.1%

-16.8%

-19.3%

-13.5%

-2.8%

7.5% -13.9%1.4%

10.8% -3.4%7.5%

40.6% 33.8%-2.4%

16.6% 5.4%7.6%

0.2% -7.1%-11.5%

5.0% -9.1%-14.9%

6.1% 3.4%-4.8%

20.3% -4.0%1.4%

-9.2%

-4.1%

-13.9%

1.0%

13.8%

10.7%

31.6%

42.7%

-47.3% -28.8%-39.6%

-43.7% -25.6%-28.5%

-21.6% -10.7%-22.9%

-25.6% -14.3%5.8%

-25.5% -17.48%5.7%

-30.7% -16.2%7.6%

-3.9% -2.8%22.8%

-1.8% 6.1%48.6%

2018 2019 2020

March April May June March April May June March April May June




Mortgage Registrations by Property Type

Other Residential

Condo

Semi Detached

Single Detached

Row

Multi Residential

4.67% 11.93% -2.74%

-26.69% -32.06% -23.72%

-27.73% -28.11% -37.63%

-26.03% -26.80% -34.56%

-31.72% -32.46% -32.81%

-32.43% -18.89% -30.71%

10.72%

1.48%

-19.31%

-10.28%

-20.64%

-8.50%

-4.70%

4.81%

-11.74%

-12.74%

-17.44%

-1.63%

4.55% -3.65%7.14%

18.15% 4.31%4.84%

4.42% 8.32%-0.26%

5.24% 0.11%-6.26%

4.58% -4.29%-14.89%

12.68% 1.85%-2.89%

12.99%

19.34%

22.24%

22.28%

19.38%

22.21%

-8.61% 6.62%7.22%

-19.97% -3.35%8.90%

-11.33% -15.05%12.46%

-12.43% -10.43%13.36%

-12.73% -10.76%19.96%

-15.04% 2.30%38.71%

2018 2019 2020

March April May June March April May June March April May June

When we look at data in relation to sales registrations for residential properties, volumes have started to positively trend upward as we saw an increase of approximately 15.76% from 20,300 to 23,500

transactions. However, on the year-to-year basis, volumes for the month of June 2020 were still down by 16.67% and 21.14% compared to 2019 and 2018 respectively.



When we look at mortgage registrations in relation to property types we can see that Multi Residential and Other Residential properties experienced an increase of 2.3% and 6.62% respectively compared to June 2019. Semi detached properties experienced the largest volume decline of 15.05%, while condos, single detached

and row houses all saw a decline of less than 11%. Single detached properties were the only property type to have seen a decrease in volume compared to May 2020.

Resi

dent

ial T

rans

actio

ns

Transaction Month

1 2 3 4 5 6 7 8 9 10 11 12 13

14K

15K

16K

17K

18K

19K

20K

21K

22K

23K

24K

25K

26K

27K

28K

29K

30K

31K

32K

33K

34K

Sales Registrations: Residential Properties

2018

Reg Year

2019

2020

Mortgage registration: mortgages registered in the land registry against a property during a specific time frame.

Sales registration: a property being transacted, transferred or sold from one owner to another for an amount agreed on between both parties. These may be new property or resale properties.


For Media Inquiries, please contact Emily BoyceMarketing Manager, Financial Services [email protected]

For more information about the data presented in this publication, please contact Kan Zhu Director, Financial Services & Data Analytics [email protected]

For more information about Teranet Solutions, please contact:

[email protected]@teranet.ca [email protected] [email protected]@teranet.ca

Ottawa/Qué[email protected]

Western [email protected]



Overall, based on the data from June 2020, we can see that while COVID-19 is impacting the mortgage market, it has recovered slightly from May 2020. As more regions across the province continue to open and move towards Stage 3 in the Reopening Ontario plan it will be interesting to see what trends occur in mortgage registration volumes. In the next edition of the Monthly Market Insights Report we’ll explore these trends with the addition of July’s data, which

may show a different picture. If you need more information about mortgage registration volumes or other title data trends, the Teranet Data Science Lab can help you dig deeper. Our data scientists will work closely with you to answer your questions with insights from our proprietary database. Contact your Teranet Account Manager today if you’d like to learn more.

This month, we are also including data highlighting the sales transaction activity of first-time homebuyers and non-first-time homebuyers. When we look at first-time homebuyer transaction volumes in the first six months of 2020, we can see that this segment recorded volumes of 32,391, which is the lowest seen since 2009, and beating the previous low of 32,898 in 2018.

When we look at the non-first-time homebuyer segment, we can see that volumes are still higher than the previous low in 2009 of 66,091. However the 81,572 transactions in the first six months of 2020 is still the second lowest volume we’ve seen since 2009, and has reduced to almost two thirds of the peak seen in 2017 with 119,696 transactions. We can also see a drop of 9.67% and 8.96% on a year-to-year basis from 2018 and 2019 respectively.

Sales Transactions: First-Time Home Buyers (January to June 2020)

Sales Transactions: Non-First-Time Home Buyers (January to June 2020)

Tota

l Reg

istr

atio

ns

Tota

l Reg

istr

atio

ns

0K 0K

2009 20092010 20102011 20112012 20122013 20132014 20142015 20152016 20162017 20172018 20182019 20192020 2020

45K 120K

40K110K

35K100K

30K

90K

25K

80K

20K

70K

15K

60K

10K

50K

5K

40K

30K

20K

10K

33,065

66,091

43,384

100,51336,137

83,246

36,564

90,83533,329 85,203

33,666 85,723

37,20096,610

38,482 103,40938,012

119,696

32,898

90,32534,02286,612

32,39185,582

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