Archive for January 2009

CAAMP has released its annual mortgage report and below are some of the more prominent statistics:

• 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.
• 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.
• $136,000:  The average mortgagor’s equity.  This equity equals 51.7% of their home value on average.
• 50%:  The ratio of new mortgages taken out in the last year with amortizations greater than 25 years.
• 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.
• 5.41%:  The average Canadian’s mortgage rate.  Last year it was 5.56%.
• 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% loan to value mortgages have disappeared.
• There’s was a large 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.” 

Another interesting statistic is that more and more Canadians are using Mortgage Brokers to arrange their financing needs rather than approaching one of the Big Banks.  Reason being is that Mortgage Brokers have access to a larger variety of products and typically have access to a minimum of 30-40 lenders offering varying terms, conditions, and rates.

Are you in need of a mortgage?  Or updates on the mortgage market and current and future conditions?  Then contact your MBN Mortgage Specialist today at www.mbnmortgage.com or 1.866.955.9662.

 MBN Mortgage

Your Source for Canadian Mortgage Rates and Current Mortgage News