Canadian homeowners are comfortable with their current mortgage, focusing on reducing their mortgage faster by making lump sum payments, reducing amortization periods and refinancing with lower interest rates, according to the Canadian Association of Accredited Mortgage Professional’s (CAAMP) most recent survey report released May 30th – Confidence in the Canadian Mortgage Market.

Following are just a few key highlights from the report:

• 74% of mortgage borrowers who renewed in the last year saw their new interest rate decrease. On average, the interest rate was reduced by one-half percentage point
• Borrowers are making significant efforts to accelerate mortgage repayment, such as voluntarily increasing their regular payments (23%) and making lump sum payments (19%), with some borrowers (10%) doing both

• Approximately 50% of borrowers pay $100 per month (or more) above their required payments
• Recent buyers indicate that their expected amortization period will be about 20% shorter than their contracted length
• Mortgage brokers account for 26% of all mortgages. For borrowers who took out a new mortgage in 2011, 31% obtained it from a mortgage broker
• 83% of Canadians have at least 25% equity in their home
• “Despite daily warnings in the media about mortgage indebtedness – or maybe because of them – Canadians are making responsible decisions about their mortgages and they’re exhibiting confidence in their own situations,” said Jim Murphy, AMP, President and CEO of CAAMP. “We should feel encouraged by this behaviour – it means Canadians are well positioned to weather a potential rise in interest rates”

As always, if you have any mortgage-related questions, I’m here to help!

Angela Calla, AMP

Dominion Lending Centres-Angela Calla

604-802-3983

callateam@dominionlending.ca