Fact Sheet - 2017 Residential Mortgages in Canada
- Approximately 700,000 homes are purchased in Canada
- 625,000 of these require mortgage financing
- Over 1 million mortgages are renewed
- 325,000 are completely paid off
Among Canadian who purchased homes during 2014 to 2017:
- The average contracted amortization period is 21.5 years
- 19% have extended amortization periods (exceeding 25 years)
- 38% have taken actions during the past year to shorten their amortization periods
Among recent first time buyers (2014-2017) the average down payment was 26%. Sources of their down payments included:
- Their own savings (54%)
- Withdrawal from RRSP (7%)
- Family, via loans and gifts (18%)
- Loan from a financial institution (19%)
- Other (2%)
For mortgage borrowers active in 2017 (new loans or renewals), contracted interest rates were 2.00 points below posted rates. Discounting has increased over time (in 2005 it was 1.33 points).
Canadians have considerable equity in their homes:
- Estimated at $4.0 trillion
- The average loan-to-value ratio is just 25% and the equity ratio is 75%
- Even among the most recent buyers, the equity ratio is 53%
9% of home owners took equity out of their homes in the past year, averaging $54,500
A substantial majority (79%) of Canadians agree that "Real estate in Canada is a good long-term investment"
A small minority (just 9%) agree that "I regret taking on the size of mortgage I did"
Lake Okanagan Realty Ltd.
Tel: (250) 870-2792