In 2023, mortgage interest rates in Canada increased for all types of mortgages. The interest rate for fixed mortgage interest rates for five years and more doubled, from 2.38 percent to 5.52 percent between December 2021 and December 2023. The higher borrowing costs led to the housing market contracting in 2022 and corrections of the property prices across the country.

Rates have been trending downward in Canada for the last five years. The ebbs and flows are caused by changes in Canada’s bond yields (driven by Canadians economic developments and international rate movements, particularly U.S. rate fluctuations) and the overnight rate (which is set by the Bank of Canada). As of August 2022, there has been a 225 bps increase in the prime rate, since beginning of year 2022, from 2.45% to 4.70% as of Aug 24th 2022. The following are the historical conventional mortgage rates offered by the 6 major chartered banks in Canada in the past 20 years.

This table contains data described by the following dimensions (Not all combinations are available): Geography (1 items: Canada ...).

Canada Conventional Mortgage: 1 Year: Weekly data was reported at 6.090 % pa in 07 May 2025. This stayed constant from the previous number of 6.090 % pa for 30 Apr 2025. Canada Conventional Mortgage: 1 Year: Weekly data is updated weekly, averaging 3.750 % pa from Jan 2000 (Median) to 07 May 2025, with 1323 observations. The data reached an all-time high of 8.300 % pa in 31 May 2000 and a record low of 2.790 % pa in 16 Mar 2022. Canada Conventional Mortgage: 1 Year: Weekly data remains active status in CEIC and is reported by Bank of Canada. The data is categorized under Global Database’s Canada – Table CA.M005: Conventional Mortgage Rate.

Mortgage credit interest rate, percent in Canada, March, 2025 The most recent value is 4.39 percent as of March 2025, a decline compared to the previous value of 4.46 percent. Historically, the average for Canada from July 2016 to March 2025 is 3.3 percent. The minimum of 2.32 percent was recorded in February 2022, while the maximum of 4.84 percent was reached in May 2024. | TheGlobalEconomy.com

This dataset provides values for 30 YEAR MORTGAGE RATE reported in several countries. The data includes current values, previous releases, historical highs and record lows, release frequency, reported unit and currency.

Mortgage interest rates worldwide varied greatly in 2024, from less than four percent in many European countries, to as high as 44 percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increase in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2023, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

This table contains 38 series, with data starting from 1957 (not all combinations necessarily have data for all years). This table contains data described by the following dimensions (Not all combinations are available): Geography (1 item: Canada), Rates (38 items: Bank rate; Chartered bank administered interest rates - prime business; Chartered bank - consumer loan rate; Forward premium or discount (-), United States dollars in Canada: 1 month; ...).

Canada's inflation rate experienced significant fluctuations from 2018 to 2025. Inflation peaked at *** percent in June 2022 before steadily declining to *** percent by December 2024. In early 2025, inflation began to increase again, rising to *** percent in February, and dropping to *** percent in March. In response to rising inflation between 2020 and 2022, the Bank of Canada implemented aggressive interest rate hikes. The bank rate reached a maximum of **** percent in July 2023 and remained stable until June 2024. As inflationary pressures eased in the second half of 2024, the central bank reduced interest rates to *** percent in December 2024. In 2025, the bank rate witnessed two cuts, standing at ***** percent in April 2025. This pattern reflected broader global economic trends, with most advanced and emerging economies experiencing similar inflationary challenges and monetary policy adjustments. Global context of inflation and interest rates The Canadian experience aligns with the broader international trend of central banks raising policy rates to combat inflation. Between 2021 and 2023, nearly all advanced and emerging economies increased their central bank rates. However, a shift occurred in the latter half of 2024, with many countries, including Canada, beginning to lower rates. This change suggests a new phase in the global economic cycle and monetary policy approach. Notably, among surveyed countries, Russia maintained the highest interest rate in early 2025, while Japan had the lowest rate. Comparison with the United States The United States experienced a similar trajectory in inflation and interest rates. U.S. inflation peaked at *** percent in June 2022, slightly higher than Canada's peak. The Federal Reserve responded with a series of rate hikes, reaching **** percent in August 2023. This rate remained unchanged until September 2024, when the first cut since September 2021 was implemented. In contrast, Canada's bank rate peaked at **** percent and began decreasing earlier, with cuts in June and July 2024. These differences highlight the nuanced approaches of central banks in managing their respective economies amid global inflationary pressures.

The share of mortgages in arrears in Canada decreased for the third year in a row in 2022, reaching tan all-time low. As of December 2022, the rate of mortgage arrears was 0.15 percent, down from 0.42 percent in 2009, when the highest rate was observed. Among the different provinces, the arrears rate was the highest in Saskatchewan at 0.63 percent in December 2023.

The interest rate of business loans in Canada dropped significantly over the early months of 2020, but it soared in 2022 and 2023. In February 2020, the interest rate for business loans was 4.06 percent and it dropped to 2.8 in September 2021. The interest rate remained low until early 2022, when it began to increase at fast-pace. In September 2024, the rate declined by 13 basis points compared to the same period of the previous year.

Following the drastic increase directly after the COVID-19 pandemic, the delinquency rate started to gradually decline, falling below *** percent in the second quarter of 2023. In the second half of 2023, the delinquency rate picked up, but remained stable throughout 2024. In the first quarter of 2025, **** percent of mortgage loans were delinquent. That was significantly lower than the **** percent during the onset of the COVID-19 pandemic in 2020 or the peak of *** percent during the subprime mortgage crisis of 2007-2010. What does the mortgage delinquency rate tell us? The mortgage delinquency rate is the share of the total number of mortgaged home loans in the U.S. where payment is overdue by 30 days or more. Many borrowers eventually manage to service their loan, though, as indicated by the markedly lower foreclosure rates. Total home mortgage debt in the U.S. stood at almost ** trillion U.S. dollars in 2024. Not all mortgage loans are made equal ‘Subprime’ loans, being targeted at high-risk borrowers and generally coupled with higher interest rates to compensate for the risk. These loans have far higher delinquency rates than conventional loans. Defaulting on such loans was one of the triggers for the 2007-2010 financial crisis, with subprime delinquency rates reaching almost ** percent around this time. These higher delinquency rates translate into higher foreclosure rates, which peaked at just under ** percent of all subprime mortgages in 2011.

The North America mortgage/loan brokers market is poised for steady growth, with a market size of XX million and a CAGR of 5.00% during the forecast period of 2025-2033. The market is driven by rising homeownership rates, increasing mortgage interest rates, and growing demand for refinancing. Additionally, the emergence of fintech companies offering innovative mortgage products and services is further propelling market growth. Key market trends include the increasing use of technology to improve the mortgage process, the growing popularity of jumbo loans, and the rising demand for reverse mortgages. However, the market is also subject to certain restraints, such as regulatory changes and economic downturns. Major players in the market include Penny Mac, Home Point, Caliber Home Loans, and Fairway Independent Corporation. The United States is the largest market for mortgage/loan brokers in North America, followed by Canada. Recent developments include: In November 2022, To expand the use of eNotes across 250 locations in 49 states, Primary Residential Mortgage Inc. (PRMI) employed the eVault and digital closing platform from Snapdocs., In August 2022, Due to the slowdown in home sales caused by rising interest rates, the two biggest mortgage lenders in the US are increasing pressure on their smaller rivals by providing discounts and other incentives. The two biggest mortgage originators in the US, Rocket Mortgage and United Wholesale Mortgage, respectively, are pursuing aggressive strategies at a time when many lenders are leaving the market or going out of business.. Notable trends are: Increase in Digitization in Lending and Blockchain Technology is driving the market.

The Canada mortgage/loan brokers market size was valued at XX million in 2025 and is projected to grow at a CAGR of 5.00% from 2025 to 2033. The growth of the market can be attributed to the increasing demand for mortgages due to rising home prices and low interest rates. Other factors driving the market growth include the growing number of first-time homebuyers and the increasing awareness of the benefits of using a mortgage broker. Some of the key trends in the Canada mortgage/loan brokers market include the increasing use of technology, the growing popularity of online mortgage applications, and the increasing demand for personalized advice from mortgage brokers. The market is also witnessing a consolidation trend, with large mortgage brokers acquiring smaller ones to gain market share. The market is dominated by a few large players, such as True North Mortgage, KeyRate Corp, and CanWise Financial. These companies have a strong brand presence and a wide network of brokers. The market is also characterized by the presence of a large number of small and medium-sized mortgage brokers. These brokers typically focus on a specific niche market or geographic area. Recent developments include: In October 2023, True North Mortgage expands its Rate Relief product lineup, which initially launched with the lowest 6-month fixed rate around. The new 1-year Rate Relief mortgage is for those buying a home or who want to switch lenders at renewal to a better rate., November 2022: Home Capital Group Inc. announced that it had signed a legally binding contract (the "Arrangement Agreement") to be bought out by a wholly-owned subsidiary of Smith Financial Corporation ("SFC"), a company run by Stephen Smith., August 2022: Rocket Mortgage Canada, a digital mortgage broker based in Windsor, Ontario, made it official that it would stop doing business as Edison Financial and instead do business across the country under the name Rocket Mortgage. Rocket Mortgage said that it will change its brand and start lending directly in Canada later this year. Rocket Mortgage's agents talk with clients from all walks of life on a regular basis. Because of this, the company is in a unique position to use the information learned from these conversations to make loan products that work well and meet customer needs.. Notable trends are: Booming Alternative or Private Lending Market.

The dataset titled "Toronto — Historical Vacancy Rates by Rent Quartile" falls under the domain of Housing and is tagged as Housing Potential. It is available in HTML format and covers the geographical area of Toronto. The dataset is owned and authored by the Canada Mortgage and Housing Corporation (CMHC), and they can be contacted at contactcentre@cmhc.ca. The dataset was accessed on March 20, 2023, and is in English. The dataset description and source are provided, but the specific location is not disclosed. The dataset does not contain data about individuals or identifiable individuals. The temporal resolution of the dataset is quarterly, indicating that the data is updated every three months. The dataset is managed by the Canada Mortgage and Housing Corporation. The license for accessing the dataset is not specified. The resources available in the dataset include 'Dataset'. The metadata for the dataset was created on March 21, 2023, and was last modified on April 8, 2025.

The global mortgage/loan broker market is experiencing robust growth, projected to reach a substantial size by 2033. A compound annual growth rate (CAGR) of 15% from 2025 to 2033 indicates a significant expansion driven by several key factors. Increased demand for homeownership, particularly amongst millennials and Gen Z, fuels the need for expert guidance in navigating complex mortgage processes. Furthermore, the rising complexity of financial products and regulations necessitates the services of experienced brokers who can match borrowers with suitable loan options. Technological advancements, such as online platforms and sophisticated data analytics, are streamlining the mortgage application process and improving efficiency for both brokers and clients. This is further enhanced by a growing preference for personalized financial advice and customized lending solutions, driving demand for broker services. Competitive pricing strategies and increased accessibility to financing options also contribute to market growth. However, regulatory changes and economic fluctuations present challenges. Stricter lending regulations, aimed at mitigating risks and protecting borrowers, can impact broker profitability and operational efficiency. Economic downturns can lead to reduced borrowing activity, affecting market demand. Nonetheless, the long-term outlook remains positive, driven by the enduring need for expert financial guidance in the mortgage market. The presence of major players like Bank of America, Royal Bank of Canada, and BNP Paribas underscores the market's stability and attractiveness to established financial institutions. The market's segmentation, while not fully detailed, likely includes residential and commercial mortgages, further adding to its complexity and opportunity. Recent developments include: In November 2022, Following the acquisition of Exane by the largest lender in the eurozone last year, BNP Paribas is extending its operation in the United States., In August 2022, For first-time homebuyers, Bank of America introduced a new mortgage option that includes a bank-provided down payment and no closing expenses. In specific Black/African American and/or Hispanic-Latino areas in Charlotte, Dallas, Detroit, Los Angeles, and Miami, the Community Affordable Loan Solution is offered in designated markets. In order to help qualified individuals and families buy a home, the Community Affordable Loan SolutionTM was created.. Notable trends are: Digitization is changing the future of Mortgage.

This table contains data described by the following dimensions (Not all combinations are available): Geography (37 items: Census metropolitan areas; Saguenay; Quebec; Calgary; Alberta; Edmonton; Alberta ...).

In April 2025, global inflation rates and central bank interest rates showed significant variation across major economies. Most economies initiated interest rate cuts from mid-2024 due to declining inflationary pressures. The U.S., UK, and EU central banks followed a consistent pattern of regular rate reductions throughout late 2024. In early 2025, Russia maintained the highest interest rate at 21 percent, while Japan retained the lowest at 0.5 percent. Varied inflation rates across major economies The inflation landscape varies considerably among major economies. China had the lowest inflation rate at -0.1 percent in April 2025. In contrast, Russia maintained a high inflation rate of 10.2 percent. These figures align with broader trends observed in early 2025, where China had the lowest inflation rate among major developed and emerging economies, while Russia's rate remained the highest. Central bank responses and economic indicators Central banks globally implemented aggressive rate hikes throughout 2022-23 to combat inflation. The European Central Bank exemplified this trend, raising rates from 0 percent in January 2022 to 4.5 percent by September 2023. A coordinated shift among major central banks began in mid-2024, with the ECB, Bank of England, and Federal Reserve initiating rate cuts, with forecasts suggesting further cuts through 2025 and 2026.

This table contains data described by the following dimensions (Not all combinations are available): Geography (247 items: Carbonear; Newfoundland and Labrador; Corner Brook; Newfoundland and Labrador; Grand Falls-Windsor; Newfoundland and Labrador; Gander; Newfoundland and Labrador ...), Type of structure (4 items: Apartment structures of three units and over; Apartment structures of six units and over; Row and apartment structures of three units and over; Row structures of three units and over ...), Type of unit (4 items: Two bedroom units; Three bedroom units; One bedroom units; Bachelor units ...).

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Home Equity Lending Market Size 2025-2029

The home equity lending market size is forecast to increase by USD 48.16 billion at a CAGR of 4.7% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the massive increase in home prices and the resulting rise in residential property values. This trend presents a substantial opportunity for lenders, enabling them to offer larger home equity loans to borrowers. However, the market also faces challenges, including the lengthy procedures associated with home equity lending. Despite these challenges, companies can capitalize on the market's growth by streamlining their application processes and offering competitive interest rates.
Additionally, they can explore alternative lending models, such as digital platforms, to provide a more convenient and efficient borrowing experience for customers. By addressing these challenges and leveraging the market's growth drivers, home equity lenders can effectively navigate the strategic landscape and position themselves for success.

What will be the Size of the Home Equity Lending Market during the forecast period?

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The market continues to evolve, shaped by dynamic market conditions and diverse applications across various sectors. Homeowners seek second mortgages and home equity loans to address educational expenses, retirement planning, home improvement projects, and debt consolidation. Credit risk, loan approval, and loan term are critical factors in this market, with lenders assessing loan-to-value ratios and debt-to-income ratios to manage default risk. Fixed-rate loans offer stability, while variable-rate loans present interest rate risk. Artificial intelligence and machine learning are increasingly integrated into digital mortgage applications, streamlining origination and underwriting processes. However, concerns surrounding mortgage fraud, predatory lending, and equity extraction persist, necessitating rigorous regulatory oversight and financial literacy initiatives.
Cash-out refinances and reverse mortgages provide liquidity, while origination fees and closing costs impact affordability. Subprime lending targets borrowers with lower credit scores, increasing equity risk. Mortgage servicing, fair housing act compliance, and managing loan payments are essential components of the home equity lending landscape. 

How is this Home Equity Lending Industry segmented?

The home equity lending industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Source

  Mortgage and credit union
  Commercial banks
  Others


Distribution Channel

  Offline
  Online


Purpose

  Home Improvement
  Debt Consolidation
  Investment


Loan Type

  Fixed-Rate
  Variable-Rate


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Source Insights

The mortgage and credit union segment is estimated to witness significant growth during the forecast period.

Home equity lending is a popular financial solution for homeowners seeking to access the value of their property. Mortgage and credit unions serve as trusted providers in this market, offering various types of loans, including home equity loans and second mortgages. The loan approval process considers factors like loan-to-value ratio, debt-to-income ratio, and credit score. Reverse mortgages and cash-out refinances are alternative options for older homeowners or those in need of large funds. Interest rate risk is a significant concern for borrowers, with variable-rate loans carrying more uncertainty than fixed-rate loans. Preventing predatory lending and mortgage fraud requires vigilance. Digital mortgage applications streamline the process, while origination fees and closing costs add to the overall cost.

Mortgage servicing, property value assessment using automated valuation models, and financial planning are essential aspects of home equity lending. Homeowners may consider equity extraction for educational expenses, home improvement, or debt consolidation. Retirement planning and managing liquidity risk are also crucial considerations. Credit counseling and financial literacy are essential for making informed decisions. Regulations, such as the Fair Housing Act, protect consumers from discrimination. Machine learning and online lending platforms enhance the lending experience, offering personalized services. Mortgage lenders must manage credit risk and equity risk, ensuring a balanced portfolio. Homeowners should be aware of the potential impact of inte