P.E.I. second in Canada
Increase in new mortgages consistent with near record growth in immigration
Prince Edward Island is second among Canadian provinces for growth in new mortgages and existing homeowners moving to a new home, according to a report released on Tuesday by the Canadian Mortgage and Housing Corporation.
From 2015 to 2016, P.E.I. had a 6.6-per-cent increase in the category of new mortgages and owners moving to a new home.
“There was a near record number of immigrants in 2015. So, this could explain some of the demand for new mortgages from that segment.” Laura Cooper
Leading the country in that category was British Columbia with an eight-per-cent increase. B.C. also led the country with a 17.6-per-cent increase in refinances, renewals with a new lender and multiple mortgage holders compared to P.E.I. with a 0.5-per-cent increase.
Laura Cooper, an economist with Royal Bank of Canada, said the increase in new mortgages is consistent with other trends on the Island, such as immigration.
“There was a near record number of immigrants in 2015. So, this could explain some of the demand for new mortgages from that segment,” she said.
With the increase in owners/ movers, Cooper said this was consistent with the trend in resales.
“Re-sales were up almost 18 per cent last year, so quite strong.”
New Brunswick and Nova Scotia had declining growth in both categories while Canada as a whole had a 0.6-percent decline in new mortgages and movers and a 3.4-per-cent increase in refinances, renewals with a new lender and multiple mortgage holders.
Paul Lombardi, a contractor with New Homes Plus, works on a new residential property in Charlottetown on Tuesday.