CAAMP released its fall consumer report today, The Annual State of the Residential Mortgage Market in Canada. So what’s on the horizon for the mortgage market? Here are the top highlights from this quarter’s report.
Canadians are More Likely to Switch Lenders
Canadians have traditionally been oh-so loyal to their banks and it was typical for a consumer to stay with one bank for their entire financial lives. Today things are changing, in fact 21% of borrowers switched lenders when their mortgages were up for renewal this year, up from 12% in 2009.
Variable Mortgage Rates are Becoming More Popular
In the past, it might have all been about “five year fixed” but variable mortgage rates are continuing to gain popularity. 31% of all mortgages in Canada are now variable, and 37% of those who got a mortgage rate in the last 12 months opted for a variable rate.
Other highlights included:
- Borrowers who opted for a five year fixed rate, received a discount of 1.46 per cent on average
- Over 1 in 4 borrowers used a Mortgage Broker
- The majority of Canadians believe that other Canadians have taken on too much debt or have bought homes they can’t afford – but that they themselves are responsible.
- The average interest rate for home owners’ is 3.92%, a decrease from 4.22% last year
- 36% of mortgage holders have made lump sum payments in the past year
What do you think about the report? What do you think is on the horizon in the mortgage market?
For our latest outlook on the mortgage market, read: Mortgage Rate Outlook Panel >