Today, CAAMP released its spring consumer report, A Profile of Home Buying in Canada.
The report, (written by Will Dunning, CAAMP's chief economist) focuses on people who purchased homes between 2013 and Q1 2015, 45% of whom were first-time buyers. The report offers a detailed profile of homebuyers in Canada during a period when the housing market was under great scrutiny.
It also provides an in-depth analysis of the economic health of the economy and its impact on the Canadian mortgage industry. Significant statistics have been highlighted below the infographic:
- Since 2013, approximately 45% (280,000) of home buyers are first-time buyers
- Of all home buyers, 13% (about 80,000) have no financing on their property and 67% (about 420,000) have a mortgage but no other financing
- 18% of first-time buyers relied on gifts and loans from family for their downpayment; 10% used funds from their RRSP and 5% from their TFSA
- 64% of purchasers borrowed less than 90% of their approved amount
- 52% of mortgages were obtained from banks, 34% from mortgage brokers, and 10% from credit unions
- Bank use is lowest for first-time buyers (47%) and highest for buyers who have purchased more than two homes (58%)
- Use of mortgage brokers is most frequent for first-time buyers (39%) and lower for repeat buyers.
- On average, the amortization period is 22.1 years. 22.7 years for first-time buyers
- 70% of borrowers expect to repay their mortgage early, 16% expect to use the full amortization period and 14% expect to take longer than the contracted period.
- Fixed rate mortgages are most common (72%), while 21% are variable or adjustable rate mortgages and 7% combine fixed and variable rates; most have five-year terms (67%)
- The mortgage market remains extremely competitive in Canada. For home buyers who purchased their homes from 2013 to the present, the average mortgage interest rate is 3.00%.
If you'd like to find out if you can take advantage of the record low interest rates or have any questions about your existing mortgage please feel free to call me at 604-619-3319.