The Canadian Association of Accredited Mortgage Professionals conducts an annual survey to review trends in the housing market*. In addition to being of value to mortgage professionals, it's also interesting for homeowners to find out how other homeowners approach their mortgages. Here are some of the findings of the latest report.
There are currently about 9.62 million homeowners in Canada, 5.64 million of whom have mortgages and may also have a Home Equity Line of Credit.
For homes that were purchased during 2014 up to the time of the Fall 2014 survey, 84 percent have mortgages and of those, 76 percent chose fixed interest rates and 88 percent of the mortgages have amortization periods of 25 years or less.
The average contracted amortization period for homes purchased during 2013 or 2014 is 21.2 years. This group of buyers expects that on average they will repay their mortgages in 17.5 years, which is 3.7 years (or 17 percent) shorter than the contracted period.
As far as what kind of rates mortgage holders are paying upon renewal, more than three-quarters (78%) of borrowers who had recently renewed a mortgage saw their interest rate drop by an average of 0.81 percentage points from their rate prior to renewal.
Is your mortgage coming up for renewal in the next few months? Please call today to make sure you have the time to consider the very best renewal options possible!
* The Annual State of the Residential Mortgage Market in Canada survey was conducted by Bond Brand Loyalty (formerly Maritz Research, a national public opinion and market research firm) for CAAMP, during October 2014.