If you are like me, then you are going to enjoy quickly reading the state of mortgage industry in Canada. In the Annual State of the Residential Mortgage Market in Canada they combined various data from the consumer survey and estimated that:
(newly-constructed or resale). The average price is $376,000, for a total value of $259 billion.
financing (a mortgage and/or HELOC), 510,000 took out a mortgage only, 25,000 took a
HELOC only, and 80,000 took out both a mortgage and a HELOC.
of these traded-up (purchasing a home that cost more than the home they sold) and
one-third traded-down. Among these 240,000 homebuyers, the average change was an
increase of $66,000 (14%).
previous home, with an estimated total principal of $28 billion, which would have been
discharged or transferred at the time.
dwellings means that home purchases in 2016 have resulted in a net credit growth of $144
remaining principal for these mortgages averages $199,000, for a combined total principal of
$189 billion. About 330,000 of the borrowers who will have renewed their mortgages in 2016
also have HELOCs (although of these about 130,000 have a nil balance owing on the HELOC).
Among the 200,000 who owe money on a HELOC, the average owed is $95,000, for a
combined total of $19 billion.
Other findings on mortgaging activity include:
out of their homes during the past year, adding about $30 billion to their home mortgages
and $11 billion to their HELOCs, for a combined amount of $41 billion.
mortgage payments average $1,508 per month. For the 5.78 million mortgage holders in
Canada, this amounts to total payments of just under $105 billion per year. This includes $30
billion for interest payments and $74 billion in paydown of mortgage principals. As such,
across all mortgage holders, out of total regular mortgage payments, just 29% is for interest
and 71% is for principal repayment.
holders made lump sum payments in the past year, totaling $17 billion.
mortgages during 2016, lump sum payments total about $5 billion.
year, by amounts that equate to $4.1 billion per year.
The reader is cautioned that these estimates are based on a sample survey and, as such, are
subject to variation.
If you have any questions about a future or an existing mortgage, please don’t hesitate to call, I would love to chat.