Search Blog
Blogroll
  • Alan Fustey
  • Becky Wong
  • Bert Griffin
  • Blair MacDougall
  • Blake Goldring
  • Brett Baughman
  • Camillo Lento
  • Chris Delaney
  • Cynthia Kett
  • Darren Long
  • Desmond Jordan
  • Don Shaughnessy
  • Doug Lamb
  • Ed Olkovich
  • Eva Sachs
  • Evelyn Jacks
  • Gail Bebee
  • Gerald Trites
  • Gordon Brock
  • Guy Conger
  • Guy Ward
  • Heather Phillips
  • Ian Burns
  • Ian R. Whiting
  • Ian Telfer
  • Jack Comeau
  • James Dean
  • James West
  • Jeffrey Lipton Fairmont Gloucester
  • Jim Ruta
  • Jim Yih
  • Joe White
  • Jonathan Chevreau
  • Kenneth Eng
  • Larry Weltman
  • Malvin Spooner
  • Mark Borkowski
  • Marty Gunderson
  • Michael Kavanagh
  • Monty Loree
  • Nick Papapanos
  • Norma Walton
  • Pat Bolland
  • Patrick O’Meara
  • Paul Brent
  • Peter Deeb
  • Peter Lantos
  • Riaz Mamdani
  • Richard Crenian
  • Richard Warke
  • Rick Atkinson
  • Rob Peers
  • Robert Bird
  • Robert Gignac
  • Sam Albanese
  • Stephane Ruah
  • Steve Nyvik
  • Steve Selengut
  • Tammy Johnston
  • Terry Cutler
  • Trade With Kavan
  • Trevor Parry
  • Trindent Consulting
  • Wayne Wile
  • Categories
    December 2013
    M T W T F S S
    « Nov   Jan »
     1
    2345678
    9101112131415
    16171819202122
    23242526272829
    3031  

    Tags

    Mortgage stats and you

    Guy Ward

    Amortizations are falling, rate discounts are increasing and consumers have flocked to fixed rates. Those are a few of the trends found in the Canadian Association for Accredited Mortgage Broker’s (CAAMP)  Annual State of the Residential Mortgage Market report. The following highlights were compiled by Canadian Mortgage Trends. Where do you fit in!

    • 16% of homes purchased in 2013 had amortizations over 25 years
    • 8% of respondents believe the housing bubble will burst within the next five years
    • 82% of new mortgages for homes purchased in 2013 were fixed rate mortgages
    • 2% of buyers with less than 20% down chose a variable rate mortgage
    • 40% of new mortgages in 2013 were obtained from a mortgage broker.
    • 70% of households with mortgages have 25% or more equity
    • 57% of 2013 homebuyers were first-time buyers
    • 84% of mortgages on homes purchased in 2013 had an original amortization of 25 years or less
    • 16% of borrowers  increased the amount of their payments in the past year – the average monthly increase was  $400
    • 17% of borrowers  made a lump sum payment – the average amount was $14,000

    OTHER HIGHLIGHTS

    • 43% of current mortgage holders  consulted a mortgage broker about getting a new mortgage
    • 68% of respondents agreed their mortgages are “good debt”

    INTEREST RATES

    • 3.23% is the average mortgage interest rate for mortgages on homes purchased in 2013
    • 3.20% is the average mortgage interest rate for mortgages renewed in 2013, which averaged 0.82 percentage point lower than prior to their renewal

    EQUITY TAKE-OUT

    • 11%  of homeowners took equity out of their home in the past year with $57,000 the average amount
    • $59 billion is the estimated amount of total equity take-out in the past year
      • $16.6 billion was used for debt consolidation and repayment
      • $15.1 billion was used for investments
      • $12.3 billion was used for home renovations

    REAL ESTATE/MORTGAGE MARKET

    • 9.52 million: The number of homeowners in Canada
    • 4.28 million: The number of renters in Canada
    • 5.58 million: The number of homeowners with mortgages (who may also have a home equity line of credit (HELOC))
    • 3.94 million: The number of homeowners who are mortgage-free
    • 2.3 million: Number of total homeowners who have HELOCs

    MORTGAGING ACTIVITY

    • 450,000 of households bought homes over the past year
    • 400,000 of buyers took on mortgages

    MORTGAGE MARKET OUTLOOK

    The Canadian Real Estate Association (CREA) has revised its outlook to take into account a more buoyant market than expected. National sales have improved more quickly than anticipated. CREA’s forecast for national sales activity has been rebalanced with a modest upward revision this year to reflect stronger than expected sales for the year-to-date. Sales are forecast to reach 449,900 units in 2013. In 2014, national activity is forecast to reach to 465,600 units, a rebound of 3.5 per cent, and in line with its 10-year-average. The forecast increase reflects a gradual strengthening of sales activity alongside further economic, job, and income growth combined with only slightly higher mortgage interest rates.

    As always, if you have any mortgage questions feel free to contact me.

    Guy Ward is a Mortgage Broker in Calgary, Alberta with TMG (The Mortgage Group Alberta).

    WWW.GUYTHEMORTGAGEGUY.COM

    The MONEY® Network