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Change in the Canadian Mortgage Market 

May 2013 

Significant Statistics 


           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.