Conversion Code

January 3, 2017

Residential Mortgage Market in Canada

mortgage broker victoria

Ready to Apply?
Get Pre-Approved Today.

From amortization periods to how happy Canadians are with being homeowners, in a recent survey by the Mortgage Professionals of Canada they took a look at the numbers:

  • For homes purchased between 2014 and 2016, the average contracted amortization period is 22.4 years.
  • For homes purchased between 2014 and 2016, 84% have amortization periods of 25 years or less.
  • Each year, more than one-third of mortgage holders take actions that will shorten their amortization periods.
  • When asked why they do not own a home, Canadians aged 18-34 stated they need more time to save for a down payment (43%), while those aged 55+ feel renting is a better option (45%).
  • Among borrowers who took out a mortgage in 2016, 43% used a mortgage broker.
  • The average mortgage interest rate for homeowners is 3.02%, and for homes purchased during 2016 the average rate is 2.76%.
  • On average, first-time buyers make down payments equal to 21% of the price of the home.
  • Down payments have consistently been around the 20% range for first-time buyers, on homes purchased as far back as before 1990 and as recently as 2016.
  • Personal savings remains the most important source of down payments for first-time buyers, while gifts from parents have doubled since 2000 (7% in 2000 compared to 15% for homes purchased between 2014 and 2016).
  • On average, home equity in Canada is equivalent to 74% of the value of homes.
  • 9% of homeowners took out equity on their homes in the past year, most commonly to pay for home renovation or repair. The average amount of equity takeout was $47,600.
  • By a very large margin, Canadian homeowners are happy with their decisions to purchase their homes (91%).
  • Mortgage credit growth has averaged 7.1% per year during the past decade, but has slowed to 6.1% for the past year.
  • Outstanding residential mortgage credit is forecast at $1.45 trillion by the end of 2016. By the end of 2017 it may be just under $1.5 trillion.

If you have any questions about your mortgage, please feel free to give me a call.

We’re Your Mortgage Broker Victoria

Ready to Apply?
Get Pre-Approved Today.

More Victoria Mortage News Updates...