According to a report published by CAAMP – housing industry was a major player in the Canadian economic recovery from the last recession. Government intention to slow the market took its toll already but the full impact is yet to be felt – according to Will Dunning, Chief Economist of CAAMP.
The report highlights number of key factors of Canadian mortgage choices and their actions with the mortgage. This post presents some of the main ones.
- About 450,000 households bought homes. 50,000 did not need a mortgage. More than half of those home owners were first time buyer.
- More than four in five borrowers favours fixed rate mortgage.
- Eight in ten homeowners who took a mortgage recently – have amortization period 25 years or less.
- Borrowers generally cut their amortization period by 30%
- Borrowers who are renewing their mortgage in the second and third quarter of 2014 – will see reduced interest rate at the time of renewal.
- Average home equity in Canada is about two third of the value of the homes.
- About 11% of homeowners took equity out of their home in the past year. A total of $59 billion, up from the previous year. Before home renovation was the most popular reason, this time debt consolidation is at the top.