After spiking in popularity during the COVID-19 pandemic, variable-rate mortgages accounted for just under 20% of new mortgages by the beginning of this year, with five-year fixed rates making up 15% of the share.

Increasing consumer debt remains a “systemic risk,” CMHC said, with some households finding it challenging to repay debts, while it also revealed the risk profile of alternative lenders remains at “relatively low levels” despite a higher market share because those entities are lending more conservatively in the current uncertain economic climate.

More mortgage borrowers in alternative arrangements are renewing their loans in that space, according to CMHC, as difficulties in qualifying for conventional mortgages continue.