Some facts about the current mortgage market in Canada (from CAAMP):
1. Over 70% of Canadians choose fixed rate mortgages
2. Over 20% have variable rate mortgages
3. The remaining % have combination mortgages
For the mortgages currently held by Canadians, the average mortgage interest rate is 5.1%, a rise from the 4.9% recorded a year earlier. This average rate is quite similar to the rates that are currently available for new and renewed mortgages. However, of course, individual circumstances vary:
• If rates remain at current levels, 66% would face increased interest rates at their next renewal, 32% would have decreases, and 1% would have no change in their interest rate.
• For those scheduled to renew in the next 12 months 50% would have increased interest rates, 48% would have decreases, and 2% would have no change.
• If rates were to increase by one-half of a percentage point from current levels, 74% of borrowers would face a rate increase at their next renewal; among those renewing in the coming 12 months, 58% would see increases.
BC mortgage holders are the most likely to have a variable rate mortgage at 32% as compared to 21% for all of Canada.
The average variable rate mortgage has gone from 4.4% last year to over 5.3% this year.
Here is an updated renewal gap chart.