5 Things You Didn’t Know About the Canadian Mortgage Market

* ratehub.ca 5 THINGS YOU DIDN'T KNOW ABOUT THE CANADIAN MORTGAGE MARKET RateHub has brought to life the best stats from CAAMP's 8th annual mortgage survey. 1. WE OWN THE MAJORITY OF OUR HOMES 70% 合 The average Canadian home is 70% paid off. Percentage of Home We Own (Equity) 51% 57% 78% 100% Number of Homes 3.85M 2.10M 600k 3.15M Туре of Fiñancing Mortgage Only Mortgage & HELOČ HELOC Only None WE HUSTLE TO PAY DOWN OUR MORTGAGES Between 2008-2012, we paid off mortgages 5 years faster than our original contract. Actual Amortization Period Original Amortization Period 1990's 12 years 18.3 years 2000-2003 11.5 years 16.8 years 2004-2007 9.6 years 13.5 years 2008-2012 9.5 years 14.5 years 5 YRS And we're on track on continue that trend. In 2012 ... 975,000 O $300 975,000 mortgage holders increased monthly payments by $300. 875,000 $22,500 875,000 mortgage holders made a lump sum payment of $22,500. SOME OF US DON'T QUALIFY A FOR A MORTGAGE ANYMORE New mortgage rules will affect 9% of buyers. 9% To qualify, these buyers will have to save an additional $25,000• for their down payment. This will take them 3.5 years. $25,000 DOWN PAYMENT 4. WE USE HOME EQUITY TO CONSOLIDATE DEBT 600,000 150,000 600,000 homes took out home equity 150,000 homes used the equity to consolidate their debt obligations 5% Reducing their average interest rate by 5% 6.2% 7.6% 8.0% 18.9% Avg. interest rate on automobiles Avg. interest rate on line of credit Avg. interest rate on installment loans Avg. interest rate on credit cards A 3.26% Avg. interest rate on mortgages 5 WE WENT FIXED IN 2012 This year, the spread between fixed and variable interest rates has narrowed. 5-YR FIXED RATE 5-YR VARIABLE RATE 7% 6% 5% 4% 3% 2% 1% 0% 2006 2007 2008 2009 2010 2011 2012 Canadian home buyers also opted 14% more for fixed rates. Total Existing Mortgage Holders 2012 New Mortgage Purchases FIXED 65% vs. 79% +14% MORTGAGES VARIABLE 28% vs. 10% +18% MORTGAGES MIXED 7% vs. 11% + 4% MORTGAGES Sources: CAAMP Annual State of the Residential Mortgage Market in Canada, TransUnion, Capital Direct, Canoe Money, Globe Investor, Canadian Living, RateHub.ca Presented By: ratehub.ca Comparing Canada's Best Mortgage Rates * ratehub.ca 5 THINGS YOU DIDN'T KNOW ABOUT THE CANADIAN MORTGAGE MARKET RateHub has brought to life the best stats from CAAMP's 8th annual mortgage survey. 1. WE OWN THE MAJORITY OF OUR HOMES 70% 合 The average Canadian home is 70% paid off. Percentage of Home We Own (Equity) 51% 57% 78% 100% Number of Homes 3.85M 2.10M 600k 3.15M Туре of Fiñancing Mortgage Only Mortgage & HELOČ HELOC Only None WE HUSTLE TO PAY DOWN OUR MORTGAGES Between 2008-2012, we paid off mortgages 5 years faster than our original contract. Actual Amortization Period Original Amortization Period 1990's 12 years 18.3 years 2000-2003 11.5 years 16.8 years 2004-2007 9.6 years 13.5 years 2008-2012 9.5 years 14.5 years 5 YRS And we're on track on continue that trend. In 2012 ... 975,000 O $300 975,000 mortgage holders increased monthly payments by $300. 875,000 $22,500 875,000 mortgage holders made a lump sum payment of $22,500. SOME OF US DON'T QUALIFY A FOR A MORTGAGE ANYMORE New mortgage rules will affect 9% of buyers. 9% To qualify, these buyers will have to save an additional $25,000• for their down payment. This will take them 3.5 years. $25,000 DOWN PAYMENT 4. WE USE HOME EQUITY TO CONSOLIDATE DEBT 600,000 150,000 600,000 homes took out home equity 150,000 homes used the equity to consolidate their debt obligations 5% Reducing their average interest rate by 5% 6.2% 7.6% 8.0% 18.9% Avg. interest rate on automobiles Avg. interest rate on line of credit Avg. interest rate on installment loans Avg. interest rate on credit cards A 3.26% Avg. interest rate on mortgages 5 WE WENT FIXED IN 2012 This year, the spread between fixed and variable interest rates has narrowed. 5-YR FIXED RATE 5-YR VARIABLE RATE 7% 6% 5% 4% 3% 2% 1% 0% 2006 2007 2008 2009 2010 2011 2012 Canadian home buyers also opted 14% more for fixed rates. Total Existing Mortgage Holders 2012 New Mortgage Purchases FIXED 65% vs. 79% +14% MORTGAGES VARIABLE 28% vs. 10% +18% MORTGAGES MIXED 7% vs. 11% + 4% MORTGAGES Sources: CAAMP Annual State of the Residential Mortgage Market in Canada, TransUnion, Capital Direct, Canoe Money, Globe Investor, Canadian Living, RateHub.ca Presented By: ratehub.ca Comparing Canada's Best Mortgage Rates