April 25, 2025
Recent data from Statistics Canada shows that non-bank mortgage lenders are experiencing slower growth and rising delinquency rates, particularly in uninsured mortgages. As your local Fraser Valley mortgage experts, we want to break down what these trends mean for homeowners and homebuyers in Abbotsford, Chilliwack, Mission, and Langley.
The Changing Mortgage Landscape
According to the latest figures, non-bank lenders held $405.3 billion in residential mortgages at the end of Q4 2024, up 3.5% from the previous year. While this represents growth, it’s significantly slower than what we saw during the boom years of 2021 and 2022.
This slowdown comes as no surprise to those of us working with Fraser Valley homeowners. The Bank of Canada’s rate hikes created a challenging environment for both refinancing and new mortgage originations throughout 2023, with only modest improvements in late 2024.
The Shift Toward Uninsured Mortgages
Perhaps the most notable trend is the increasing dominance of uninsured mortgages in lenders’ portfolios. Nearly 68% of all mortgage dollars held by non-bank lenders are now uninsured, up from 60% in 2020.
For Fraser Valley homebuyers, this shift reflects several realities:
- More buyers are opting for conventional loans with larger down payments
- Many existing homeowners are refinancing properties that have appreciated in value
- The changing qualification requirements have impacted insured mortgage accessibility
Rising Delinquency Rates: Should Fraser Valley Homeowners Be Concerned?
Statistics Canada reports that by the end of 2024, nearly $7.8 billion worth of uninsured mortgages were behind on payments, representing a 16% increase from the previous year. While this is concerning, it’s important to understand what it means in our local context.
The average unpaid balance on delinquent mortgages has risen to around $260,000, suggesting that borrowers with larger loans are increasingly under financial strain. In the Fraser Valley, where property values remain high, this trend deserves attention from both current homeowners and prospective buyers.
Overall, about 2.3% of uninsured and 3% of insured non-bank mortgages were in arrears by the end of 2024.
What This Means for Fraser Valley Residents
If you’re a homeowner in Abbotsford, Chilliwack, Mission, or Langley, these trends highlight the importance of having a solid financial plan in place, especially if you’re carrying a higher-than-average mortgage balance.
For those looking to buy their first home or upgrade to a larger property, these statistics underscore the importance of working with a knowledgeable mortgage broker who understands:
- How to navigate the current lending environment
- Which mortgage products best suit your financial situation
- How to prepare for potential interest rate fluctuations
- Strategies to ensure long-term mortgage sustainability
How We Can Help
At Browne Mortgage Broker + More, we specialize in helping Fraser Valley residents make informed mortgage decisions. Whether you’re concerned about your current mortgage in light of these trends or looking to secure new financing, our team can provide the local expertise you need.
We take the time to explain complex market dynamics and translate them into practical advice for your specific situation. With offices throughout the Fraser Valley, we understand the unique characteristics of our local housing markets and how broader economic trends affect our communities. Our brokers stay current with the latest CMHC mortgage rules and programs to provide you with the most up-to-date guidance.
Contact our Abbotsford office or our Chilliwack location to discuss how these trends might impact your mortgage plans. We’re here to help you navigate this changing landscape with confidence.
Want to learn more about current mortgage trends and how they affect Fraser Valley homeowners? Visit our Services page or use our Mortgage Calculator to explore your options.
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For the latest housing market data, visit the Fraser Valley Real Estate Board statistics page.
