Here is a quick look Canadian Mortgages (November 21, 2013):
- Confidence in the market is strong: less than 10% of Canadians expect that a housing bubble will burst, though the expectation is stronger among younger people
- Of all new mortgages obtained this year, 40% were through a mortgage broker and 42% from a bank; overall the broker share in the industry has increased from 25% to 28% since 2012
- 80% of homeowners selected at least one of the following emotions when asked about their mortgages: comfortable, confident, content, secure
- More than 80% of Canadian homeowners have at least 25% equity in their homes
- Of the new homes purchased in the past year, 57% were purchased by first time buyers
- 68% of Canadians feel mortgage debt is "good debt"
- For mortgages repaid in the past two decades, actual repayment periods have been 30% shorter than original contracted periods
- This year, 38% of mortgage-holders took steps to accelerate their repayments and shorten their amortizations
I ALWAYS recommend to my clients to pay down their mortgages ahead of schedule. I do this on all my properties including my office. If you get a bonus at work, money for your birthday, etc. you should be putting that extra money down on your mortgage. If you start paying extra it will reduce the length of your mortgage and save you big bucks in the long run. It is also smart to paydown your mortgage in case you lose your job in the future. If you have overpaid your mortgage each month you will have mortgage payments saved up and most banks will allow you to take a "Mortgage Vacation" based on how many extra month's worth of payments you have made.
For more information on Bristish Columbia Real Estate Contact:
Lake Okanagan Realty
506 Doyle Avenue
Kelowna, BC V1Y 6V8