Nov 08

Annual State Of The Residential Mortgage Market In Canada

larry-200x285The Canadian Association of Accredited Mortgage Professionals just released their report on the State of The Residential Mortgage Market in Canada. Some of the more significant indicators and trends are very interesting.

  • 35% of all mortgage holders have either increased their payments or made a lump sum payment on their mortgage in the last 12 months
  • Vast majority of Canadians have ability to afford higher mortgage payments. 84% said they could handle monthly increases of $300 or more in their monthly payments
  • 90% of Canadian homeowners have at least 10% equity in their homes, 81% have over 20% equity
  • 70% of Canadians are satisfied with their mortgage terms
  • Despite low Bank of Canada interest rates reflected in low variable rate mortgages, a majority (66%) of Canadians still have a five year fixed mortgage, 29% have variable mortgages and 4% a combination
  • Overall, 22% of mortgages have an amortization of greater than 25 years compared to 18% last year
  • Overall home equity is 72%. For homeowners with mortgages, equity level averages 50%
  • Mortgage rates continue to drop. Average mortgage rate is 4.22% versus 4.55% last year. For those who took out a mortgage in the last year, the average rate was 3.75%, 72% of those renewing saw a decrease in their mortgage rate
  • Overall, mortgage brokers account for 25% of all mortgages, for new mortgages in the past year this number rises to 40%
  • As of August 2010, there was over $1 trillion in outstanding residential mortgage credit in Canada
  • Mortgage arrears rate remains stable at 0.42%, lower than for most of the 1990s