A survey of more than 2,000 Canadians conducted and compiled by Maritz Research Canada concludes that Canadians are comfortable with the amount of their mortgage debt. The key findings are:
· 80% of mortgages have an original amortization of no more than 25 years
· 18% of mortgage holders increased their monthly payments in the past year.
· 16% of mortgage holders made lump sum payments on their mortgages during the past year
· 69% of borrowers have a fixed rate mortgage
· 85% of mortgages taken out in the last year were fixed rate
· The average mortgage rate of 3.52% is lower compared to last year’s average of 3.64%
“The survey, sponsored by the Canadian Association of Accredited Mortgage Professionals (CAAMP) demonstrates that Canadians with mortgages are managing debt responsibly, negotiating low interest rates and paying down their mortgage faster than required, “ said Jim Murphy, AMP, President and CEO of CAAMP. “What is cause for concern is that the housing market, an important engine of growth for the Canadian economy, is slowing to such an extent that without any change, it could take another five years to recover.”
The last thing we need is for our regulators to even consider tighter mortgage rules. It’s like they’re making us lose some extra weight by cutting off our arm. Sure it will get the job done, but it won’t make us any healthier and we’re not going to like the side effects.