Canadian Association of Accredited Mortgage Professional (CAAMP) just released a consumer report - Stability in the Canadian Mortgage Market. This report reveals that reveals that Canadians are displaying confidence by paying down their mortgages and using home equity to make home improvements or investments.
Following are some key statistics uncovered in the report:
- Canadians currently have $855 billion in mortgages on principal residences and $215 billion in home equity lines of credit (HELOCs)
- Equity takeouts amount to $26 billion annually, with funds most frequently used for renovations ($9.4 billion), followed by investments ($5.0 billion)
- The average down payment for a home purchased in the last 12 months was 30%, up from 26% for homes purchased two years ago
- Among all borrowers, 63% have fixed-rate mortgages, 30% have variable-rate mortgages and 6% have a combination of both fixed- and variable-rate mortgages
- Less than a quarter (22%) of all borrowers have amortization periods longer than 25 years
- The average time to pay off a mortgage is 7.4 years less than the original amortization
- 34% of those who most recently renewed or renegotiated their mortgages did so before their terms expired.
- 200,000 Canadian homeowners paid off their mortgages in the last 12 months
- The average mortgage interest rate discount is 1.44% for those who chose a five-year fixed-rate mortgage in the last 12 months, with the average mortgage rate being 4.04%
- Of those who renewed their mortgages in the last 12 months, 65% are paying lower rates than previously
- 66% of all mortgage borrowers can tolerate a monthly mortgage increase of $300 or more
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