15%: The percentage of Canadians cashing out equity in their homes over the past 12 months (57% of these people used part or all of the funds for debt repayment/consolidation; 45% used part or all for renovations or home repair)
36%: The percentage of borrowers who opted for variable-rate mortgages in the last 12 months (With rates near a bottom, the trend towards variables may reverse–if it hasn’t already.)
68%: The percentage of Canadians with fixed-rate mortgages
1.68%: The average discount borrowers received off of posted 5-year fixed rates (This seems to reflect a time when spreads were wider. With posted rates at 5.25%, there is no way the average Canadian is getting 3.57% on a 5-year fixed today.)
4.83%: The average Canadian’s mortgage interest rate (down from 5.41% in CAAMP’s fall 2008 survey)
17%: The proportion of current mortgages with an amortization over 25 years
46%: The percentage of mortgages initiated in the last two years with an amortization over 25 years
18%: The number of households with family members who lost a job in the last six months
3%: The percentage of mortgagors indicating they could not afford a $50 increase in their payments
0.36%: The ratio of mortgages in arrears for over 90 days (still steady and modest)
CAAMP President, Jim Murphy, believes Canadians have what it takes to withstand economic challenges: “With only a very small number at risk of not being able to pay or refinance their mortgages, our overall market is very strong.”
According to CAAMP, data used in this report was obtained from various sources, including an online survey of 2,000 Canadians. One-half of the sample (1,000 Canadians) were home owners with mortgages and the remainder were renters, home owners without mortgages, or others who live with their families and are not responsible for mortgage payments or rents. The survey was conducted by Maritz (a national public opinion and market research firm) for CAAMP, during March 2009.
Established in 1994, the Canadian Association of Accredited Mortgage Professionals (CAAMP) is Canada’s national mortgage industry association. CAAMP has over 12,000 members, consisting of mortgage lenders, brokers, insurers and other industry participants.
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