The Canadian Association of Accredited Mortgage Professionals, a body that serves as the industry voice to government, media and regulators, released their Annual State of the Resident Mortgage Market in Canada Report this week. The sixth annual report compiles data to give an overview of the evolving state of the residential mortgage market in Canada.
Aside from revealing that the Canadian Mortgage Market has exceeded the $1 Trillion benchmark I found the 43 paged report contained some other statistics that might be interesting to someone other than a self-professed mortgage geek like me.
The following are some of the highlights from the report:
• 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
• 40% of all new mortgages this year were arranged by mortgage brokers
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