2013 Mortgages: A Canadian Market Overview

2013 MORTGAGES A CANADIAN MARKET OVERVIEW FIXED 85% VARIABLE 13% COMBO 2% NEW MORTGAGE DEBT $47 BILLION RATE TYPE ON NEW MORTGAGES 3.52 DOWN FROM 3.64% (2011) AVG MORTGAGE RATE MORTGAGE PROVIDERS ONLINE RESEARCH OTHERS ALL MORTGAGES 18% 18% III 51% 57% BANKS 2 IN 3 O 31% 25% BROKERS CANADIANS NEW MORTGAGES RESEARCH MORTGAGE INFO ONLINE TOPICS SEARCHED 9.65 MILLION CANADIAN HOMEOWNERS THE GOOD 1 84% "INTEREST RATE" 2 63% "MORTGAGE OPTIONS" 3 56% "MORTGAGE CALCULATORS" 8 MILLION HAVE +25% EQUITY IN THEIR HOME 3.7 MILLION ARE MORTGAGE-FREE CANADIANS SAVED %$879 MILLION IN MORTGAGE RATE DISCOUNTS [AVG DISCOUNT FROM POSTED RATE 2.20%1 INCREASED AMOUNT OF PAYMENT MADE A LUMP SUM PAYMENT 18% 17% INCREASED FREQUENCY OF PAYMENTS DECREASED AMORTIZATION AT RENEWAL /REFINANCE 10% 9% %24 CANADIANS PUT 10 BILLION EXTRA IN LUMP SUM PAYMENTS TOWARDS THEIR MORTGAGE DEBT THE BAD $41 MÍLLION $1 CANADIANS LOST OVER BY NOT SHOPPING AROUND EXISTING CLIENTS 00% 1 YET.. 88 PAY +0.10% MORE THAN NEW CLIENTS REMAIN "LOYAL" TO THEIR EXISTING LENDER THE UGLY HOUSING DEVELOPMENTS 20-30% FEWER HOMES BUILT (2012-2015) WILL SHRINK INDUSTRY- RELATED JOBS 205K 175K 150K 2012 2013 2014/15 (EST) A TOTAL OF 150,000 JOBS WILL BE LOST IN CANADA -35,000 TORONTO JOBS -7,500 VANCOUVER JOBS = 1000 Sources CMHC 2013 Mortgage Consumer Survey CAAMP Change in the Canadian Market Bank of Canada Discounting in Mortgage Markets * ratehub.ca f /RATEHUB @RATEHUB_CANADA III I I IIII I I .. II I .- 血 2013 MORTGAGES A CANADIAN MARKET OVERVIEW FIXED 85% VARIABLE 13% COMBO 2% NEW MORTGAGE DEBT $47 BILLION RATE TYPE ON NEW MORTGAGES 3.52 DOWN FROM 3.64% (2011) AVG MORTGAGE RATE MORTGAGE PROVIDERS ONLINE RESEARCH OTHERS ALL MORTGAGES 18% 18% III 51% 57% BANKS 2 IN 3 O 31% 25% BROKERS CANADIANS NEW MORTGAGES RESEARCH MORTGAGE INFO ONLINE TOPICS SEARCHED 9.65 MILLION CANADIAN HOMEOWNERS THE GOOD 1 84% "INTEREST RATE" 2 63% "MORTGAGE OPTIONS" 3 56% "MORTGAGE CALCULATORS" 8 MILLION HAVE +25% EQUITY IN THEIR HOME 3.7 MILLION ARE MORTGAGE-FREE CANADIANS SAVED %$879 MILLION IN MORTGAGE RATE DISCOUNTS [AVG DISCOUNT FROM POSTED RATE 2.20%1 INCREASED AMOUNT OF PAYMENT MADE A LUMP SUM PAYMENT 18% 17% INCREASED FREQUENCY OF PAYMENTS DECREASED AMORTIZATION AT RENEWAL /REFINANCE 10% 9% %24 CANADIANS PUT 10 BILLION EXTRA IN LUMP SUM PAYMENTS TOWARDS THEIR MORTGAGE DEBT THE BAD $41 MÍLLION $1 CANADIANS LOST OVER BY NOT SHOPPING AROUND EXISTING CLIENTS 00% 1 YET.. 88 PAY +0.10% MORE THAN NEW CLIENTS REMAIN "LOYAL" TO THEIR EXISTING LENDER THE UGLY HOUSING DEVELOPMENTS 20-30% FEWER HOMES BUILT (2012-2015) WILL SHRINK INDUSTRY- RELATED JOBS 205K 175K 150K 2012 2013 2014/15 (EST) A TOTAL OF 150,000 JOBS WILL BE LOST IN CANADA -35,000 TORONTO JOBS -7,500 VANCOUVER JOBS = 1000 Sources CMHC 2013 Mortgage Consumer Survey CAAMP Change in the Canadian Market Bank of Canada Discounting in Mortgage Markets * ratehub.ca f /RATEHUB @RATEHUB_CANADA III I I IIII I I .. II I .- 血