CHANGES IN CANADIAN MORTGAGE MARKET
Change in the Canadian Mortgage Market
• 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.