Housing Trends in Canada

canadian-housing-trends CMHC’s new 2007 Canadian Housing Advisor is chock full of informative nuggets.  Among them…

  • 86% of Canadian population growth from 2001 to 2006 occurred in metropolitan areas.
  • Canada had roughly $694 billion in mortgages in 2006, up 10.7% from 2005.  Rising home prices contributed to the pop.
  • The average mortgage amount approved rose 7.3% in 2006.
  • The spread between 5-year fixed and variable mortgages declined from 1.59% to 0.96%.  As a result, people chose a variable mortgage far less in 2006 (only 22% chose variable versus 36% in 2005).
  • In 2006, only 1 in 400 were over 3 months in arrears on their mortgage.  That’s the lowest rate since 1990.
  • 1/2 of those who renewed a mortgage in 2006 accepted their lender’s initial offer without negotiating.

Here’s one that was especially interesting.  30% of those surveyed felt that getting a mortgage was a “source of stress.”  If this sounds like you, try a professional mortgage planner for your next mortgage.  It’s typically free, all the legwork and paperwork is done for you and, best of all, you have a professional advocate to do your negotiating.

  1. I’m not in the mortgage, investment, or any finance related field. I too recommend anyone that I talk to to see a Mortgage Broker or similar advisor when looking for financing.
    I’m really surprised at the 50% of people who just rolled over and took the terms. I wonder if they received the paper work, looked at advertised rates online and then signed the paper. These people would be treated as not negotiating, but they have found the deal acceptable and within the range of similar offerings.
    I still have a long way to go (over 4 years) in my first 5 year term, but I’m looking forward to the renewal. It’s a great time to adjust things that i didn’t think about the first time around, but because I had a Mortgage Broker there isn’t much in my mortgage that I don’t find acceptable.

  2. In the past I have used a large financial institution for my mortgage needs as the bank normally “foots the bill” for the property appraisal fee on both the refinance property and new property.
    Would both appraisal costs (on the new and existing property) be covered should I choose to use a mortgage broker as well?

  3. We had a one year mortgage and made the mistake of signing our lender’s renewal form blindly, thinking we’d get the same discount off their posted rate as when we signed up.
    Needless to say we were very very wrong. Our rate discount decreased 1/2 % and there was nothing we could do about it after we signed. I’d advise anyone renewing to negotiate hard or use a mortgage broker (this is what we did the 2nd time and we got an even better discount from posted than the first time). JK

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