Recent Study Indicates Stable Housing and Mortgage Markets in Canada

A recent report released by the Canadian Association of Accredited Mortgage Professionals indicates that the Canadian housing and mortgage markets are both experiencing a period of stability.

Here are some of the highlights from the report:

Ø  Canadian appetite for home buying has returned to pre-recession levels, following a slide over the past three surveys. Almost 60 per cent respondents thought that now was a good time to buy  

Ø  Optimism is returning to the market with almost half (46 per cent) of those questioned saying that they expect prices to rise  

Ø  Among borrowers who took out a new mortgage in the last 12 months, 27% obtained it from a mortgage broker. Overall mortgage broker share stands at 23%  

Ø  There is currently $855 billion in mortgages on principal residences and $215 billion in Home Equity Lines of Credit (HELOC)  

Ø  Individuals with HELOCs only have an average 65 per cent equity in their homes  

Ø  HELOC prevalence is highest among middle age homeowners  

Ø  Equity takeouts amount to $26 billion annually, with most funds used for renovations ($9.4 billion), followed by investments ($5.0 billion)  

Ø  The average down payment for a home purchased in the last 12 months was 30%, up from 26% for homes purchased two years ago  

Ø  Among all borrowers, 63 per cent have fixed rate mortgages, 30 per cent have variable rate mortgages and 6 per cent have a combination of both  

Ø  Less than a quarter (22 per cent) of all borrowers have amortization periods longer than 25 years  

Ø  34 per cent of those who most recently renewed or renegotiated their mortgages did so before their term expired. The average time to pay off a mortgage is 7.4 years less than the original amortization  

Ø  200,000 homeowners paid off their mortgages in the last 12 months  

Ø  The average mortgage interest rate discount is 1.44 per cent for those who chose a five year fixed rate mortgage in the last twelve months with the average mortgage rate being 4.04%  

Ø  Of those who renewed their mortgages in the last twelve months, 65 per cent are paying lower rates than previously  

Ø  66 per cent of all mortgage borrowers can tolerate a monthly mortgage increase of $300 or more 

To schedule a free and confidential mortgage consultation click here

Domenic Mirabelli

Mortgage Agent
Lic# M10000364
416.303.4480

domenic.mirabelli@migroup.ca

www.thescooponmortgages.com
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