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 InsightsSeptember 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.

The 41,000 residential mortgage transactions in August 2020 are notable for two reasons: first, this is the sharpest year over year drop seen in 2020 and secondly it is the first time in the last 3 years where August has shown a decline. Whether this is the traditional ‘end of summer’ decline usually seen in September or a bellwether of ‘2nd wave’ or ‘back to school’ concerns remains to be seen.

Within the first eight months of 2020, there have been 321,860 mortgage registrations, representing a total dollar amount of $149.5 billion. This is a significant increase from 2019, which saw a total dollar amount of $135.1 billion in the first eight months of the year. Similar to the trend we saw in June and July’s data, mortgage registrations in 2020 represent a larger dollar amount than every year since 2012 excepting 2017 ($168.7 billion).

This dollar amount reflects overall market pricing increases and resiliency as it sources from the lowest total registration volume since 2014 (319,290).

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 August 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

400K

200K

100K

388.83K

108.6B

330.46K

97.1B

319.29K

99.8B

357.95K

118.8B

380.22K

140.8B

403.85K168.7B

324.78K133.3B

328.41K135.8B

321.86K149.5B

Data provided exclusively through LendView, powered by Teranet

When we look at mortgage registration volume by municipality we can see that almost all of the top 20 municipalities experienced a decline in mortgage registration volumes compared to August 2019. Barrie was the only one of Ontario’s larger municipalities to experience an increase.

Last month Mississauga, Ajax, Richmond Hill and Burlington experienced the largest declines, and we can see a similar trend this month as Richmond Hill, Markham and Burlington had the largest decreases in mortgage registration volumes. The declines of 35.9% and 33% in Markham and Burlington were the largest these municipalities have experienced so far in 2020. Richmond Hill’s largest decline took place in April with a decrease of 47.9% compared to the same time in 2019.

As of August 31, 2020, we can see that lenders in all categories experienced a decrease in mortgage registration volumes compared to August 2019. Over the past four months we can see that all lender categories have seen a decline in mortgage registration volumes compared to 2019, the only exception to this was the 7.59% increase Other Banks experienced in June.

Aside from Trust Companies, all lender categories experienced a decline in volume greater than 20%. The harshest declines were experienced by Insurance Companies, Monoline Lenders and Private Lenders with 47.62%, 40.25% and 38.89% respectively. This was

the most significant decline that Insurance Companies, Monoline Lenders, Credit Unions, Other Banks and Big 6 banks have experienced in the past four months.

Monthly Market Insights September 2020

Mortgage Registrations by Municipality: 2020

Richmond Hill -5.2%

March

-47.9% -22.2% -5.5% -27.5% -38.5%

April May June July August

Milton -24.0 -9.6% -2.2% -12.9% 7.3% -5.3%

Vaughan 13.3% -19.5% -25.6% -17.9% -22.9% -14.8%

Oshawa 29.3% -0.8% -11.9% -2.1% -10.4% -16.6%

Windsor 21.7% 2.2% -28.9% -31.1% -15.3% -24.4%

Hamilton 19.7% 3.8% -10.0% -9.7% -7.2% -19.7%

Kitchener 22.0% 6.3% -24.4% 0.4% 0.3% -21.1%

Oakville 24.7% 5.3% -4.0% -1.1% -21.7% -24.8%

Toronto 22.6% 23.6% -16.9% -1.1% -11.2% -30.7%

Cambridge 41.6% 13.1% -29.2% -11.8% -11.2% -15.7%

London 23.5% 14.7% -12.4% -10.7% -14.2% -24.8%

Barrie 33.4% 13.5% -0.7% 0.8% -3.0% 1.1%

Guelph 15.3% 13.5% -11.3% -2.1% -9.6% -3.3%

Whitby 19.8% 34.3% 16.1% -2.7% -13.7% -24.9%

Mississauga 15.4% 13.4% -12.2% -12.8% -32.9% -29.3%

Markham 58.0% 23.4% -1.2% -21.1% -16.6% -35.9%

Ajax 15.0% 16.9% -13.4% -9.0% -28.5% -27.5%

Ottawa 29.2% 26.5% -4.8% 10.9% -9.3% -22.2%

Brampton 24.0% 22.0% -5.2% -12.1% -24.3% -29.1%

Burlington 13.4% 41.1% -13.1% -16.2% -28.5% -33.0%

Mortgage Registrations by Lender Category

Individual Lenders

Private Lenders

Insurance Companies

Trust Companies

Credit Unions

Monoline Lenders

Big 6 Banks

Other Banks

-9.29% -10.96% -0.08% -2.94%

-6.07% -18.01% -0.95% 6.64%

-25.00% -37.40% 35.92% -25.45%

-0.81% -7.42% 12.29% 19.39%

-14.19% -23.67% -8.17% -12.30%

-22.40% -27.27% -29.24% -31.00%

-32.24% -37.29% -21.97% -22.34%

-31.19% -22.88% -14.27% -28.28%

7.61% -13.83% -7.38% -7.04%

10.90% -3.36% 6.88% 2.60%

40.58% 33.77% -18.57% 2.44%

16.58% 5.43% 13.19% 4.05%

0.18% -7.05% -2.43% -12.25%

4.97% -9.02% 21.26% 25.09%

6.14% 3.44% 11.31% 7.41%

20.25% -4.09% 7.41% 19.97%

-47.11% -27.51% -25.91% -35.74%

-43.40% -24.02% -17.27% -38.89%

-21.65% -9.71% -11.40% -47.62%

-25.52% -12.54% -8.45% -4.77%

-25.32% -15.65% -16.52% -31.08%

-30.62% -14.89% -23.12% -40.25%

-3.74% -1.09% -8.76% -20.10%

-1.66% 7.59% -4.64% -23.25%

2018 2019 2020

May June July August May June July August May June July August

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.

Data provided exclusively through LendView, powered by Teranet

Monthly Market Insights September 2020

Mortgage Registrations by Property Type

Other Residential

Condo

Semi Detached

Single Detached

Row

Multi Residential

11.74% -2.71% 13.38% 9.22%

-32.09% -23.69% 1.72% -15.14%

-28.11% -37.63% -20.63% -21.19%

-26.80% -34.57% -21.78% -18.89%

-32.26% -32.86% -26.00% -21.16%

-18.89% -30.71% -13.84% -13.52%

4.80% -3.46% 6.87% 4.94%

18.21% 4.33% 10.72% 22.25%

4.42% 8.32% 10.06% 4.30%

5.24% 0.11% 9.50% 2.09%

4.25% -4.31% 7.75% 0.90%

12.68% 1.85% 7.97% 1.18%

-8.54% 16.17% 17.74% -11.23%

-19.82% -1.50% -7.39% -27.95%

-11.30% -14.39% -21.61% -24.03%

-12.29% -9.70% -13.67% -21.06%

-12.31% -9.86% -19.92% -23.89%

-15.04% 3.15% 1.73% -25.61%

2018 2019 2020

May June July August May June July August May June July August

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 27,500 in July 2020

to 29,500 in August 2020. However, on the year-to-year basis, volumes for the month of August 2020 were still down compared to 31,800 in 2018 and 34,100 in 2019.

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.

Data provided exclusively through LendView, powered by Teranet

Similar to the trends seen in the lender 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 August 2019. All property types experienced a decline in mortgage registrations greater than 10%. Condos, multi residential properties and semi

detached properties saw the largest declines with 27.95%, 25.61% and 24.03% respectively. August 2020 was the fourth month in a row of volume declines for condos, semi detached properties, row properties and single detached properties compared to the same period in 2019.

Resi

dent

ial T

rans

actio

ns

Transaction Month

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

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 or resale properties.

Monthly Market Insights September 2020

For Media Inquiries, please contact Emily BoyceMarketing Manager, Financial Services Emily.Boyce@teranet.ca

For more information about the data presented in this publication, please contact Kan Zhu Director, Financial Services & Data Analytics Kan.Zhu@teranet.ca

For more information about Teranet Solutions, please contact:

OntarioChris.Butler@teranet.caErin.McTavish@teranet.ca Heather.Reid@teranet.ca Mark.Huttram@teranet.caPhilip.Share@teranet.ca

Ottawa/QuébecGrant.Anderson@teranet.ca

Western CanadaDerek.Tinney@teranet.ca

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.

Data provided exclusively through LendView, powered by Teranet

Overall, based on the data from August 2020, we can see that COVID-19 is still having an impact on the mortgage market. August data shows us a decline in mortgage registration volumes across all lender and property types, and it will be interesting to see if this trend continues as Ontario experiences higher daily new cases of COVID-19 than during the summer months. In the next edition of the Monthly Market Insights Report we’ll explore these trends

with the addition of September’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 transactions volumes in the first eight months of 2020, we can see that the volume trend in this segment hasn’t changed much since last month’s report. As of August 31, 2020, first-time home buyers recorded a transaction volume of 47,298, which beats the previous low of 49,310 seen in 2018. Similar to the trends we saw in last month’s report, 2020 has had the lowest transaction volume amongst this buyer segment since 2009.

Similar to the first-time home buyer segment, transaction volume trends haven’t changed since July in the non-first time home buyer segment. 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 106,978. However, the 124,515 transactions in the first eight months of 2020 is still the second lowest volume we’ve seen since 2009.

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

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

60K

50K

180K

160K

140K

40K 120K

30K100K

80K

20K 60K

10K40K

20K

52,745

106,978

57,816

137,275

53,160

128,003

53,868

137,549

50,948

132,135

51,551

132,899

57,099

147,106

58,005

159,09954,785

172,620

49,310136,198

52,545

137,94747,298

124,515