Tuesday, November 18, 2014

Annual State of the Residential Mortgage Market in Canada - CAAMP

Annual State of the Residential Mortgage Market in Canada

Significant Statistics – November 2014
  • During 2014, 31% of Canadians obtained their mortgage from a mortgage broker, 61% directly from a bank.
  • For mortgage holders who renewed their mortgage in the last 12 months, 78% saw a reduction in their rate.
  • Mortgage discounting remains prevalent across Canada, for a 5-year fixed mortgage the average discount was 1.85%.
  • 69% of all outstanding mortgages are fixed rate, 24% variable and 6% combination. For the past 12 months 76% are fixed rate.
  • In the past year, 38% of mortgage holders either increased their amount of payment, made a lump sum payment or increased their frequency of payments.
  • 85% of all homeowners in Canada have 25% or more equity in their homes.
  • Mortgage credit growth will continue to slow, averaging 4.5% by end of 2015. Mortgage credit growth has averaged 8.1% per year during the past decade.
  • 70% of homeowners see their home as a place to live, 30% see it as an investment.
  • 11% of all homeowners took out equity from their property last year with an average take-out amount of $58,000. Debt consolidation and renovation are the top two areas where money was used.
  • The average mortgage interest rate in Canada is 3.24%.
  • Among homeowners who purchased during 2014, the average mortgage interest rate is 2.89%.