Good News on the Mortgage Front

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    

Jeff Gingerich

Jeff Gingerich

Sales Representative
CENTURY 21 Home Realty Inc., Brokerage*
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