The Canadian Association of Accredited Mortgage Professionals(CAAMP) has released the results of a spring survey titled The Canadian Residential Mortgage Market During Challenging Times. Their findings may surprise based on the prevailing doom and gloom within the media. For those that have a mortgage, 40% have at least 50% in home equity. If we include those homeowners who are mortgage-free, this number rises to 65%. Only 2% of those with a mortgage owe more than the current market value of their home. In Canada, the average home equity is 72% in contrast to the U.S. where the Federal Reserve reports average home equity at 43%.
The recent decline in mortgage rates has been beneficial for many. For those renewing their mortgage in the past year, the average renewal resulted in interest rate reductions of almost 1%. A further 3/4 of those who renewed had their interest rate reduced. Another 3/4 of Canadian borrowers are likely to see their interest rates go down at their next renewal.
The survey results indicate that 83% of mortgages have an amortization period of up to 25 years while the remaining 17% have amortizations greater than 25 years.
For information on how this affects you and your situation, feel free to contact me at 519-505-4488 MailTo: Jeff_Gingerich@Centum.ca