Interesting Mortgage Stats
CAAMP (Canadian Ass. of Accredited Mortgage Professionals) has released its annual mortgage report and it's chock full of mortgage stats. Here's a rundown on the more notable ones:
• 5,250,000: The number of Canadian home owners with mortgages.
• 29%: The percentage of Canadian homeowners who got a new mortgage in the last 12 months.
• 86%: The percentage of people renewing or refinancing that stayed with their existing lender.
• $136,000: The average mortgagor's equity. This equity equals 51.7% of their home value on average.
• 22%: The percentage of mortgagors who took equity out of their homes in the past 12 months. People are spending more because last year it was 17%.
• $41,000: The average equity that borrowers took out of their homes this year. That's up 16% from last year. The most common reason for borrowing this equity? Debt consolidation.
• 50%: The ratio of new mortgages taken out in the last year with amortizations greater than 25 years.
• 5.41%: The average Canadian's mortgage rate. Last year it was 5.56%.
• 0.40%: The average interest rate improvement realized by people who refinanced in the past year.
• 1.59%: The average discount off of bank-posted rates.
• 1.96: The average number of quotes people get when shopping for a mortgage.
• 0.28%: The percentage of Canadians who are 90 days or more past due on their mortgage. That's up just slightly from last year.
• 10%: The approximate decline in mortgage approvals that CAAMP foresees in 2009.
• 36%: The percentage of Canadians who are aware that insured 40-year and 100% LTV mortgages have disappeared.
Peoples' favorite mortgage terms:
• 1-3 years: 29% of borrowers
• 4-5 year: 61% of borrowers
• Over 5 years: 10% of borrowers
CAAMP says there's a noticeable trend in borrowers taking shorter terms when compared to last year.
There's also a big trend towards variable rates. 40% of mortgages were variable in the past year. In CAAMP's 2007 report the number was just 21%. CAAMP says that's because "consumers may be expecting interest rate reductions." We'd also like to think they're becoming more educated about the long-term advantage of variable rates.
Where did people get their new mortgages this year?
• Major banks: 47%
• Mortgage brokers: 35%
• Credit Unions: 11%
• Other: 6%