2014 Mortgage Trends in Canada: A Year in Review

2014 Mortgage Trends Canada

2014 may be drawing to a close, but speculation regarding this year’s mortgage market is far from over. Economists and home buyers alike are waiting with baited breath to see if 2015 will usher in change for borrowing costs and the housing market.

To better understand the market’s future direction, we’ve looked to the past; read on for the strongest trends seen within the mortgage market in 2014.

Looking for the best mortgage rates in Canada? Find them here!

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What’s the Best Mortgage Feature?

No surprise here – home buyers value the lowest rate above all else when choosing a mortgage.

Best-Mortgage-Feature-FINAL

But the cheapest interest rate isn’t the only way to save money on your mortgage. Check out these 4 essential mortgage features to ask for to whittle your housing costs even further.

What’s In Store for the 2015 Mortgage Market?

They say all good things must come to an end… but that hasn’t been the case for the record-low mortgage rates that lingered throughout 2014. Several economic reports have stated a rate increase is inevitable, and could come as early as the later half of 2015.

Do you think fixed or variable rates will go up or down next year? Here’s what our readers have to say:

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2014 Mortgage Statistics

The age-old debate of what’s better – a fixed or variable rate – persisted in 2014. While record-low bond yields ensured steep discounting for fixed rates, variable mortgage holders enjoyed the lowest monthly payments all year long as the Bank of Canada made no move to shake up the national cost of borrowing.

Check out our month-to-month breakdowns of this year’s best rates, and how they were affected by national economic data.

7-mortgage-value

Month Mortgage Amount
January
February
March
April
May
June
July
August
September
October
November
$217,000
$246,000
$252,000
$250,000
$249,000
$248,000
$248,000
$250,000
$250,000
$250,000
$248,000

 

1-fixed-vs-bond

Month Fixed Rate Bond Yields
January
February
March
April
May
June
July
August
September
October
November
December
3.14%
2.98%
2.89%
2.75%
2.84%
2.84%
2.79%
2.74%
2.74%
2.65%
2.69%
2.65%
1.57%
1.63%
1.69%
1.67%
1.5%
1.57%
1.52%
1.52%
1.66%
1.56%
1.46%
1.47%

5-variable-vs-prime

Month Variable Rate Prime Rate
January
February
March
April
May
June
July
August
September
October
November
December
2.35%
2.3%
2.3%
2.3%
2.25%
2.25%
2.25%
2.2%
2.2%
2.15%
2.1%
2.1%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%

How Much Would You Save?

We’ve said it before and we’ll say it again – it’s outstanding how much you can save on your mortgage costs by knowing your options. Comparing the market and picking a competitive rate with great features can shave thousands off what you’ll pay over the course of your amortization.

How much would you save? We’ve compared the lowest rate with the highest each month, along with the total mortgage savings based on the average Canadian home buyer.

Who Is The Average Canadian Home Buyer?

Mortgage Amortization Mortgage Term National Average Home Price 5% Down Payment Amount CMHC Insurance Premiums Total Mortgage Value
25 years 5 years $385,200* $19,260 $11,527** $377,467

*http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2013_Q04.pdf

**http://www.cmhc-schl.gc.ca/en/co/buho/buho_023.cfm

***All calculations made with RateSupermarket.ca’s Mortgage Payment Calculator

2-fixed-rates

Month Lowest Fixed Rate Highest Fixed Rate
January
February
March
April
May
June
July
August
September
October
November
3.14%
2.98%
2.89%
2.75%
2.84%
2.84%
2.79%
2.74%
3.14%
2.65%
2.69%
7.00%
7.00%
5.34%
5.34%
5.34%
5.34%
5.34%
5.34%
7.00%
5.34%
5.34%

6-variable-rates

Month Lowest Variable Rate Highest Variable Rate
January
February
March
April
May
June
July
August
September
October
November
2.35%
2.30%
2.30%
2.30%
2.25%
2.25%
2.25%
2.20%
2.20%
2.15%
2.10%
7.00%
7.00%
3.10%
3.10%
3.10%
3.10%
3.10%
3.10%
3.10%
3.10%
3.10%

4-25-year-savings

Month Savings With The Lowest Variable Rate Savings With The Lowest Fixed Rate
January
February
March
April
May
June
July
August
September
October
November
$294,300
$297,700
$45,600
$45,600
$47,600
$47,600
$48,600
$51,300
$51,300
$54,000
$56,700
$249,000
$258,600
$151,200
$159,300
$153,500
$153,500
$156,900
$159,900
$159,900
$165,000
$162,600

What do you think is in store for mortgages in 2015? Tell us in a comment, or visit us on Facebook and Twitter.

 *Source: All mortgage rate information is from RateSupermarket.ca RatePulse

Also read: The Top Mortgage Moments of 2014>

Related Topics

Mortgage News / Mortgages / RSM News

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