CAAMP has released its annual mortgage report and it’s chock full of mortgage stats. Here’s a rundown on the more notable ones:
- 5,250,000: The number of Canadian home owners with mortgages.
- 29%: The percentage of Canadian homeowners who got a new mortgage in the last 12 months.
- 86%: The percentage of people renewing or refinancing that stayed with their existing lender.
- $136,000: The average mortgagor’s equity. This equity equals 51.7% of their home value on average.
- 22%: The percentage of mortgagors who took equity out of their homes in the past 12 months. People are spending more because last year it was 17%.
- $41,000: The average equity that borrowers took out of their homes this year. That’s up 16% from last year. The most common reason for borrowing this equity? Debt consolidation.
- 50%: The ratio of new mortgages taken out in the last year with amortizations greater than 25 years.
- 5.41%: The average Canadian’s mortgage rate. Last year it was 5.56%.
- 0.40%: The average interest rate improvement realized by people who refinanced in the past year.
- 1.59%: The average discount off of bank-posted rates.
- 1.96: The average number of quotes people get when shopping for a mortgage.
- 0.28%: The percentage of Canadians who are 90 days or more past due on their mortgage. That’s up just slightly from last year.
- 10%: The approximate decline in mortgage approvals that CAAMP foresees in 2009.
- 36%: The percentage of Canadians who are aware that insured 40-year and 100% LTV mortgages have disappeared.
Peoples’ favourite mortgage terms:
- 1-3 years: 29% of borrowers
- 4-5 year: 61% of borrowers
- Over 5 years: 10% of borrowers
CAAMP says there’s a noticeable trend in borrowers taking shorter terms when compared to last year.
There’s also a big trend towards variable rates. 40% of mortgages were variable in the past year. In CAAMP’s 2007 report the number was just 21%. CAAMP says that’s because “consumers may be expecting interest rate reductions.” We’d also like to think they’re becoming more educated about the long-term advantage of variable rates.
Where did people get their new mortgages this year?
- Major banks: 47%
- Mortgage brokers: 35%
- Credit Unions: 11%
- Other: 6%
Thanks to CAAMP economist Will Dunning for putting together this wealth of data.
The first 30 pages of the report is based on survey results of only 2176 people… did I read this correctly? If so, that’s not a large enough cross-section to make any inferences.
“Data used in this section was obtained via an online survey conducted during the fall of 2008 by Maritz (a national public opinion and market research firm) on behalf of CAAMP. This is referred to below as the “CAAMP/Maritz” study2. The survey included 2,176 Canadians. In this survey, 1,000 of the sample were home owners with mortgages and the remaining 1,176 were tenants and home owners without mortgages.”
Hi Mike,
Thanks for the note. Maritz is pretty well known research firm so I’d be surprised if the survey wasn’t conducted with statistical accuracy in mind. I could be wrong but 1000+ properly picked respondents seems like a pretty decent sample size from what I remember of my university statistics course. (of course that was many many moons ago…)
2176 is a very good sample size. Even sample of a 1000 mortgage holders is a good size. Many polls use less.
“5,250,000: The number of Canadian home owners with mortgages.”
What’s the variance of this stat compared YOY to 2007 and 2006?
Hi Tyler, As I remember, 4.8 million Canadian home owners had mortgages in last year’s report. Not sure about 2006. – Rob
So just shy of a 10% jump, that seems like significant increase in one year…
I thought the exact same thing Tyler.
Here’s the report links for reference…
2008
2007