CAAMP, a national organization representing Canada’s mortgage industry, has released it’s Annual State of the Residential Mortgage Market in Canada Report and the results are, for the most part, positive.
Here are the major highlights of the report:
- • The vast majority of Canadians with mortgages are able to afford at least a $300 increase in their monthly mortgage payments.
- • One in three (35 per cent) mortgage holders have either increased their payments or made a lump sum payment on their mortgage in the last year.
- • 89 per cent of Canadian homeowners have at least 10 per cent equity in their homes and 80 per cent have more than 20 per cent equity.
- • Overall home equity is at 72 per cent of the total value of housing in Canada; for homeowners who have mortgages, equity level averages 50 per cent.
- • As of August 2010, there was $1.01 trillion in outstanding residential mortgage credit in Canada, an increase of 7.6 per cent from last year.
- •18% of mortgage holders took out equity from their homes or increased the amount of the mortgage principal within the past twelve months. The average amount of equity take-out is estimated at $46,000.
- • Mortgage arrears rate remains stable at 0.42%, lower than for most of the 1990s.
CAAMP’s press release notes the following;
Homeownership is a good long-term investment
Most Canadians agree that buying a home is a good long-term investment and are focused on their mortgages to support that investment.
Many mortgage holders are making voluntary additional payments: 16 per cent have increased monthly payments during the past year, 12 per cent have made lump sum payments, and 7 percent did both.
“Canadians are being smart and responsible with their mortgages,” said Jim Murphy, AMP,
President and CEO of CAAMP. “They are building equity in their homes and making informed,
long-term mortgage decisions. The survey results speak to the strength of our mortgage market,especially when compared to the United States.”