Recent finds conclude that Canada’s housing market is secure and healthy in most of the Country, and enjoying a stable mortgage environment.
What kind of mortgage is most popular with Canadians? Fixed rate mortgages, as held by 65 percent of mortgage holders, come up on top, while variable rate mortgages follow with 29 percent share of the mortgage market, and hybrid mortgages, comprised of a combination of both, make up the balance.
One recent study suggest that lower rates have prompted 14 percent of mortgage holders to lock in their interest rate during the past year by converting form a variable rate mortgage to a fixed rate mortgage. For those who renewed their mortgage over the past year, 74 percent are paying lower rates then they did previously.
While most people consider the 25 year amortization of a mortgage the average, actual repayment times are proving to be much shorter. In fact, for mortgages repaid during the past 20 years, actual repayments periods have generally been only two-thirds of the contracted periods. Today’s borrowers are expected to shorten their amortizations periods by about one-fifth of their loan time through a number of methods, including increasing their regular payments and making lump-sum pre-payments.
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