monthly market insights - teranet · monthly market insights august 2020 mortgage registrations by...

The Teranet and gateway logo are trademarks of Teranet Inc. (Teranet). All data in this document is provided on an as is basis, without warranties of any kind. Teranet will not, for any reason, be liable for any damages related to the use of data herein.

Monthly Market InsightsAugust 2020

Our industry is experiencing a 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.

In July 2020, there were 40,300 residential mortgage transactions in the province of Ontario. This is the largest decrease from previous years that we have seen so far in 2020, as July 2019 had 52,000 transactions in 2019 and 2018 had 47,500 transactions. Mortgage registrations amongst residential properties also dropped from the previous month by about 2,300 transactions.

Within the first seven months of 2020, there have been 274,510 mortgage registrations, representing a total dollar amount of $126.5 billion. This is a significant increase from 2019, which saw a total dollar amount of $113.1 billion in the first seven months of the year. Similar to the trend we saw in June’s data, 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 $143.1 billion worth of mortgage registrations in the first seven months of the year. While 2020 represents the

second largest total dollar worth of mortgage registrations, it also represents the second lowest volume of mortgage registrations since 2012. The only year with lower mortgage registration volumes was 2014 with 267,160.

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 July 2020)

Tota

l Reg

istr

atio

ns

Tota

l Dol

lar

Amou

nt

0K 0B

50B

150B

100B

2012 20122013 20132014 20142015 20152016 20162017 20172018 20182019 20192020 2020

300K

200K

100K

333.93K

92.3B

275.67K

80.4B

267.16K

82.7B

304.01K

100.0B

320.68K

117.3B

344.00K

143.1B

274.99K112.3B

275.74K113.1B274.51K 126.5B

Data provided exclusively through LendView, powered by Teranet

When we look at mortgage registration volume by municipality we can see that for the first time in 2020 all of the top 20 municipalities in Ontario experienced a decline in mortgage registration compared to the same time in 2019.

Last month Windsor, Markham, Vaughan and Toronto experienced the largest declines, but in July the largest declines were seen in Mississauga, Ajax, Richmond Hill and Burlington. The declines of 40.2%, 36.6%, 36.5% and 36.3% were the largest drops in volume year over year volume that we’ve seen in 2020, excluding the drop of 47.9% that Richmond Hill experienced in April.

Milton and Windsor were the only two municipalities that experienced better mortgage registration volumes in July compared to the volumes in June. Ottawa experienced the biggest change from June 2020 volume to July 2020 volumes, as last month volumes were up 10.8% and now the volumes have declined by 21.6% compared to July 2019.

From a lender perspective we can see that lenders in all categories experienced a decrease in mortgage registration volumes compared to June 2019. While lenders in all categories saw an uptick in volume in June compared to May 2020 this trend did not continue in July. However, for Individual Lenders, Private Lenders and Trust Companies, the harshest year over year volume declines were in May and not July.

Individual Lenders, Mortgage Finance Companies and Private Lenders experienced the most significant year over year decreases of 35.76%, 34.60% and 28.09% respectively. This is the fourth month in row

that Individual Lenders, Private Lenders and Insurance Companies have seen a decrease in mortgage registration volumes compared to the same time in 2019. While earlier in 2020 both Other Banks and the Big 6 banks saw mortgage registration volumes higher than the same time in 2019, July was the worst year over year decline in mortgage registration volume so far in 2020.

Monthly Market Insights August 2020

Mortgage Registrations by Municipality: 2020

Richmond Hill 34.0%

February

-5.2%

March

-47.9% -22.2% -5.5% -36.5%

April May June July

Milton -3.7% -23.9 -9.6% -2.2% -13.2% -5.2%

Vaughan 47.6% 13.3% -19.5% -25.7% -18.9% -31.1%

Oshawa -7.7% 29.3% -0.8% -11.9% -2.1% -20.4%

Windsor 20.2% 21.5% 2.2% -28.9% -31.3% -30.2%

Hamilton 19.2% 19.7% 3.7% -10.0% -9.9% -18.5%

Kitchener 15.2% 22.0% 6.3% -24.5% 0.4% -11.2%

Oakville 16.1% 24.7% 5.2% -4.0% -1.1% -30.6%

Toronto 18.4% 22.6% 23.6% -17.0% -1.2% -23.9%

Cambridge 28.7% 41.6% 13.1% -29.2% -12.0% -21.1%

London 12.6% 23.3% 14.6% -12.4% -10.7% -25.9%

Barrie 19.7% 33.4% 13.5% -0.7% 0.8% -13.5%

Guelph 10.1% 15.3% 13.5% -11.3% -2.1% -33.0%

Whitby 36.9% 19.8% 34.3% 16.1% -2.9% -22.7%

Mississauga -3.7% 15.4% 13.4% -12.2% -13.0% -40.2%

Markham -14.8% 58.0% 23.4% -1.2% -21.3% -24.1%

Ajax -1.2% 15.0% 16.6% -13.4% -9.0% -36.6%

Ottawa 43.2% 29.1% 26.3% -5.2% 10.8% -21.6%

Brampton 34.2% 24.0% 22.0% -5.3% -12.1% -34.8%

Burlington -1.3% 13.4% 41.1% -13.3% -16.6% -36.3%

Mortgage Registrations by Lender Category

Individual Lenders

Private Lenders

Insurance Companies

Trust Company

Credit Union

Mortgage Finance Co.

Big 6 Banks

Other Banks

-9.29% -10.96% -0.12%11.74%

-6.11% -18.09% -0.91%17.36%

-25.00% -37.40% 35.92%-16.67%

-0.81% -7.42% 12.27%-6.40%

-14.16% -23.67% -8.20%-6.41%

-22.40% -27.27% -29.24%-7.39%

-32.24% -37.28% -21.98%-11.17%

-31.19% -22.92% -14.27%-31.35%

7.56% -13.87% -7.34%1.41%

10.87% -3.36% 6.85%7.58%

40.58% 33.77% -18.57%-2.35%

16.60% 5.40% 13.22%7.56%

0.18% -7.05% -2.43%-11.48%

4.97% -9.02% 21.26%-14.90%

6.15% 3.42% 11.31%-4.78%

20.25% -4.04% 7.41%1.35%

-47.25% -27.76% -35.76%-39.59%

-43.57% -24.21% -28.09%-28.44%

-21.65% -10.68% -25.44%-22.89%

-25.55% -12.69% -22.69%5.86%

-25.39% -15.83% -27.67%5.65%

-30.68% -15.08% -34.60%7.63%

-3.81% -1.26% -20.26%22.88%

-1.75% 7.39% -18.26%48.60%

2018 2019 2020

April May June July April May June July April May June July




Mortgage Registrations by Property Type

Other Residential

Condo

Semi Detached

Single Detached

Row

Multi Residential

11.77% -2.71% 13.24%

-32.12% -23.65% 1.68%

-28.11% -37.63% -20.63%

-26.80% -34.57% -21.78%

-32.19% -32.96% -25.87%

-18.89% -30.71% -13.84%

10.71%

1.50%

-19.31%

-10.28%

-20.62%

-8.50%

4.70% -3.54% 6.96%7.17%

18.33% 4.25% 10.73%4.82%

4.42% 8.32% 10.06%-0.26%

5.24% 0.11% 9.50%-6.25%

4.03% -4.12% 7.66%-14.74%

12.68% 1.85% 7.97%-2.89%

-8.58% 15.77% -3.30%7.40%

-19.87% -1.66% -22.79%8.95%

-11.33% -14.49% -30.16%12.46%

-12.37% -9.86% -23.62%13.38%

-12.73% -10.05% -29.49%19.92%

-15.04% 2.67% -13.03%38.71%

2018 2019 2020

April May June July April May June July April May June July

When we look at data in relation to sales registrations for residential properties, volumes continue to positively trend upward as we saw an increase in volume from 24,000 in June 2020 to

26,000 in July 2020. However, volumes for the month of July 2020 were still down compared to 34,100 in 2019 and 30,400 in 2018.



Similar to the trends seen in the lender and municipality data, when we look at mortgage registrations in relation to property type, we can see that there was a decline in all categories compared to July 2019. Other Residential and Multi Residential properties both experienced an increase in volume in June 2020 compared to the same time in 2019, and in July 2020 compared to July 2019, these property types

saw the smallest decline in volume compared to other property types. The property types that experienced the largest decline in July compared to the same time in 2019 were semi detached and row houses with 30.16% and 29.49% respectively. Since May, condos, semi detached, single detached and row houses have seen a decline in volume compared to the same time in 2019.

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 July 2020, we can see that COVID-19 is having an impact on the mortgage market. July was the first month that saw a decline in mortgage registration volumes across all lender and property types, and it will be interesting to see if this trend continues as all regions of Ontario have entered into Stage 3 of the Reopening Ontario plan. In the next edition of the Monthly Market Insights Report we’ll explore these trends

with the addition of August’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.

When we look at first-time home buyer transaction volumes in the first seven months of 2020, we can see that the volume trend in this segment hasn’t changed much since June. As of the end of July first-time home buyers recorded volumes of 40,215, which is the lowest seen since 2009, which beats the previous low of 40,859 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 87,403. However the 100,440 transactions in the first seven months of 2020 is still the second lowest volume we’ve seen since 2009.

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

Sales Transactions: Non-First-Time Home Buyers (January to July 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

50K 140K

40K120K

30K

100K

80K

20K60K

10K

40K

20K

43,285

87,403

50,757

118,62144,619

105,370

44,994

113,50541,576

107,184

42,477

108,936

47,752

121,561

47,991130,16146,161

145,567

40,859 112,75743,084

113,18440,215

100,440

mailto:mailto:

mailto:[email protected]








monthly market insights - teranet · monthly market insights august 2020 mortgage registrations by...

Documents