Canada’s national mortgage industry association, CAAMP, has released its 6th bi-annual survey of the Canadian mortgage market.
As usual, it contains oodles of interesting mortgage factoids.
Here’s a summary of the key numbers: CAAMP 2010 Spring Mortgage Survey
Great summary Rob.
I wish CAAMP would include statistics on how many people stay with their current lender when they renew and refinance.
I’d also love to find a source for the average amount of time someone stays in a 5 year term.
If anyone knows where to get this information I’d really appreciate it.
Another excellent post Rob — Thanks!
To me, this is the most puzzling fact:
“6% chose hybrid mortgages (part fixed/part variable)”
Few people choose to hold only bonds or only stocks in an investment portfolio, so why don’t more people choose a hybrid mortgage to mitigate the risk associated with variable?
CMHC’s 2009 Mortgage Survey showed that up to 90% of people renewing, renew with their existing lender.
I can’t recall where I saw similar stats for refinances, but lenders retain a large ratio of refi customers too.
The industry average for time spent in a 5-year term (before breaking/refinancing) is about 3.5 years. I’ve heard anecdotally that branch-channel customers stay for closer to four years.
The number of people choosing hybrids will probably rise a bit as people learn that hybrids exist and discover their benefits.
They can sometimes have a few potential drawbacks though (depending on the lender/product/client situation, etc.), so we’ll have to do a story on them soon…
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