A new study by the Canadian Association of Accredited Mortgage Professionals details the state of home ownership, mortgage debt and more.
Close to four in 10 Canadians carrying a home mortgage took extra steps to pay down what they owe this year, according to new research released yesterday by the Canadian Association of Accredited Mortgage Professionals (CAAMP). “Our study shows that 38% of Canadians made some additional payments on their mortgages,” said Jim Murphy, president and chief executive officer of CAAMP in an interview with me yesterday. “They increased their payment, increased their frequency or made a lump-sum payment.”
-16% reported increasing the amount they paid (over and above their minimum monthly payment),
-17% made an additional lump-sum payment.
-8% increased the frequency of their payments.
-38% said they did one or more of these.
A few other interesting highlights in this study show that:
- Canadians went fixed rate this year. No less than 82% of new mortgages signed between January and October 2013 (when the study was conducted) were fixed rate. Variable and adjustable rate mortgages were issued to 9%.
- We’re taking equity out of our homes. More than one million homeowners took some amount of equity out of their home this year. Canadians added roughly $36 billion to their mortgages and $23 billion to their HELOCs.
- On average, Canadians own about two-thirds of their homes. The average equity position is 66%, according to a CAAMP estimate.
The average fixed rate issued this year was 3.65% (3.18% for 2013 purchases; 3.17% for 2013 renewals).
The average variable or adjustable rate was 3.05% (2.85% for purchases; 3.21% for renewals).
And the average combination rate was 3.7% (4.19% for purchases; 3.54% for renewals).
About 1.5 million Canadians renewed their mortgage this year.
Kind Regards,
Tibor Bogdan
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