The Canadian Association of Accredited Mortgage Professionals (CAAMP) recently released its spring mortgage consumer report, Change in the Canadian Mortgage Market.
The report, compiled by Will Dunning, CAAMP’s Chief Economist, reveals that Canadians are comfortable with their mortgage, but also discusses the impacts that government restrictions on mortgage borrowing are having on housing-related economic activity.
Following are just a few key highlights from the report:
Canadians are paying off their mortgages quicker. For mortgages repaid during the past two decades, actual repayment has been two-thirds of the contracted period
Just 8% of homeowners took out equity on their home last year. The average equity takeout was $48,000, with the primary purpose being for renovations/home repairs
83% of Canadian homeowners have at least 25% equity in their home
Overall, 69% of mortgage holders have fixed-rate mortgages. For those taken out in the last 12 months, the figure rises to 85%
The average mortgage rate is 3.52%. For those renewed in the past 12 months, the average rate is 3.15%
For the past 12 months, the actual average rate for a five-year fixed-rate mortgage has been 2.20% below the banks’ posted rate
60% of Canadians have two or more credit cards, including 30% who have three or more. The average outstanding balance is $3,500
Mortgage credit growth is slowing dramatically. For 2014, it’s forecasted to be 2.5% to 3%, or roughly half the current rate
18% of mortgage holders, or about 1.1 million people, voluntarily increased their mortgage payments, while a further 16%, or about 975,000, made a lump-sum payment during the last year
Mortgage brokers continue to account for 25% of all mortgages. For new mortgages in the last 12 months, that total rises to 31%
As always, if you have any mortgage-related questions, I’m here to help!