Annual State of the Residential Mortgage Market in Canada
A copy of the full report is available to download at www.caamp.org
For homes purchased in 2013, 82 per cent had fixed rate mortgages. Overall, 66 per
cent of homeowners have fixed rate mortgages, 26 per cent variable rate mortgages and
8 per cent combination mortgages.
For homes purchased in 2013, 84 per cent have amortizations of 25 years or less.
Overall 81 per cent have amortizations of 25 years or less.
40 per cent of all new mortgages in 2013 were obtained through a mortgage broker,
while 42 per cent were obtained from a bank. Overall mortgage broker share has
increased from 25 per cent to 28 per cent since last year.
For mortgages that have been paid off in the last two decades, repayment periods have
been 30 per cent shorter than the original contracted period.
During 2013, the average discount on a five-year fixed rate mortgage was 2.13 points –
the average mortgage is 3.06 per cent, compared to the average posted rate of 5.21 per
For borrowers renewing their mortgage in the next six months, 96 per cent will see a
lower rate. For borrowers who renewed their mortgage in 2013, 64 per cent saw a lower
On average, home equity in Canada is 66 per cent of the value of a home, compared to
less than 50 per cent in the US, and 83 per cent of Canadian homeowners have at least
25 per cent equity in their home.
Mortgage credit has slowed from an average of 8.6 per cent in the last decade to 4.5 per
cent for 2013 and is projected to be even lower at 3.25 per cent in 2014.
Among those who purchased homes in 2013, 57 per cent were first time buyers.
During 2013, 38 per cent of borrowers took steps to accelerate their repayment period,
including increasing their payment amount, making a lump sum payment or increasing
their payment frequency.
Overall, 80 per cent of those surveyed say mortgage credit is good debt, 84 per cent say
that real estate is a good investment and 80 per cent expressed positive feelings of
confidence and security toward their mortgages and home ownership in general.