Alberta employment fell in October: mortgage planning context

The October employment snapshot

Statistics Canada's November 6 release reports that Alberta employment declined by 24,000 (0.9%) in October, reversing September's increase. Employment remained 1.6% higher than a year earlier, while unemployment rose to 7.3%.

B.C. added 12,000 jobs (0.4%), with unemployment at 6.3%. Ontario employment was little changed and its unemployment rate reached 7.3%. Nationally, employment was broadly unchanged and unemployment rose to 6.7%.

These seasonally adjusted estimates cover October 11–17. Statistics Canada cautions that monthly results have more sampling variability than longer-term trends.

Bring the discussion back to your household

Our planning interpretation: a provincial employment result cannot determine what an Edmonton household can afford, whether a particular mortgage will be approved or what a lender will quote next. The useful next step is to compare your current income and commitments with the assumptions in your financing plan.

FCAC's existing preapproval guidance says lenders review income, assets and debts and may request recent pay records or other employment evidence. A preapproval does not guarantee final mortgage approval.

• If your hours, pay or employer have changed, ask your broker or lender which updated records are needed and whether the earlier assessment needs to be revisited.
• For an upcoming purchase, put closing costs and the ongoing household budget beside the proposed mortgage payment. Identify any expenses that would be difficult to cover if income were lower.
• For a renewal discussion, bring the current balance, payment and renewal date, along with an up-to-date income picture. Ask for the conditions and costs of the options available to your household.

If payments are becoming difficult

FCAC's financial-difficulty guidance urges borrowers to contact their bank early. It describes expectations for banks and other federally regulated mortgage providers to assess suitable support when an existing principal-residence mortgage is at risk. Ask how any proposed arrangement changes payments, total cost and amortization; extending repayment can increase interest costs.

Relief depends on the circumstances and the lender's assessment. Confirm any agreed payment changes directly with the lender. For help preparing a financing conversation, start with our Edmonton mortgage page, preapproval guide or renewal guide.