May 2012 - Significant Statistics
- There is currently $994 billion in mortgages on primary residences and $161 billion in Home Equity Lines Credit (HELOCs).
- 83% of Canadians have at least 25% equity in their home. The average amount of equity is estimated at $214,000.
- Individuals with HELOCs have an average of 82% equity in their homes. Those with mortgages and HELOCs have an average of 41% equity in their homes. For those with just mortgages, equity is 49%.
- The total amount of equity take out during the past year is $46 billion, with most funds used for renovations ($17.25 billion), followed by investments ($10 billion) and debt consolidation ($9.25 billion).
- Among all mortgage holders, 65% have fixed rate mortgages, 29% have variable rate mortgages and 7% have a combination of both.
- 75% of outstanding mortgages have amortization periods of 25 years or less. For mortgages that have been repaid during the past two decades, actual repayment periods have generally been only two-thirds of the contracted periods.
- 23% of mortgage holders have increased their monthly payments in the last year. 19% have made a lump sum contribution to their mortgage.
- Among borrowers who took out a new mortgage during 2011, 31% obtained the mortgage from a mortgage broker. For current mortgages, regardless of when they were obtained, 26% were obtained from a mortgage broker.
- The average mortgage rate in 2011 is 3.64%, down from 4.04% a year earlier. For mortgages on homes purchased recently, the average rate is 3.48%.
- Of those who renewed their mortgages in the last twelve months, 74% are paying lower rates than previously.
- Accumulating down payment remains a considerable challenge to potential home buyers in Canada. 52% of tenants point to lack of a down payment as a reason they rent rather than own.
- If the minimum down payment in Canada was 10% instead of the current 5%, there would have been 100,000 fewer home purchases annually from 2007 to present day.
- There has been a considerable amount of “locking in” (converting from variable rate to fixed rate mortgages). 14% of fixed rate mortgage holders (slightly over 500,000) have locked in during the past 12 months.
- 2012 mortgage credit growth of 8.5% will be below the 10 year average of 9.1%.
Published by CAAMP
