May 2013 Changes in the Canadian Mortgage Market

May 27, 2013

Mortgage Monday

Last week, CAAMP released its spring consumer report, Change in the Canadian Mortgage Market. A copy of the full report is available to download here, but for those that don’t feel like reading that whole report, here are some of the significant stats from the report:

  • Overall housing starts are projected to decline from 205,000 in 2011 to 150,000 by 2014. In total, the housing starts downturn will reduce related employment by 80,000 jobs.
  • For mortgages repaid during the past two decades, actual repayment has been two-thirds of the contracted period.
  • 8% of home owners 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 home owners in Canada 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 5-year fixed-rate mortgage has been 2.20% below the 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 is forecasted to be 2.5% to 3%, or roughly half the current rate.
  • Mortgage brokers continue to account for 25% of all mortgages. For new mortgages in the last 12 months, that total rises to 31%.
  • 18% of mortgage holders, or about 1.1 million, voluntarily increased their mortgage payments, while a further 16%, or about 975,000, made a lump sum payment during the last year.
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About Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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