Canada is anticipating trends and developments that will shape the Canadian residential mortgage market in 2023. Keep reading for expert projections that will shed light on potential opportunities and challenges for homebuyers, sellers, and investors this year.

The 2023 Residential Mortgage Industry Report from CMHC has provided us with a roadmap for the mortgage industry for the rest of the year which will prove to be useful for many in the realty and landlord business.

1. Increase Of Non-Bank Lenders

Due to competitive rates and flexible terms, there have been an increase of non-bank lenders. These non-bank lenders are set to innovate themselves to cater to the ever-changing dynamic needs of the consumer. We can expect these entities to become influential players in the mortgage industry moving forward.

2. Emergence Of New Technology

It’s essential not to undermine the importance of new technology, including AI, in the coming year and future years. This new technology is becoming increasingly popular in the role of digital platforms and the mortgage approval process. This trend that has grown quickly since the pandemic has made the mortgage process more efficient, quicker, and more accessible for borrowers.

3. Flexible Government Policies

Due to the pandemic, the government implemented some new policies that impacted mortgage lending practices. In the future, there will be more government policies that will keep pace with market conditions.

While these shifts could be beneficial to many types of real estate professionals, there are bound to be challenges. The increase of non-bank lenders and new technology could have unintended consequences on the housing market. We are seeing the rise of a complex mortgage industry landscape and we all need to be aware of and keep a close watch as dynamics change.