Average mortgage interest rate in Canada is 3.24%

Canadians paying off their mortgage debt while rates are still low

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(Getty Images/Juan Monino)

(Getty Images/Juan Monino)

My friend Mike is laughing all the way to the bank. Not only did he sell his east-end 2-bedroom condo for a sizable profit—$50,000 in a year, after fees—but he also got a new mortgage for his downtown condo at a low-rate of 2.99%.

According to a new survey released yesterday by the Canadian Association of Accredited Mortgage Professionals (CAAMP) the average mortgage interest rate in Canada this year was 3.24%, while the average discount off posted rates was 1.85% (making the average mortgage rate for those that purchased in 2014, a low 2.89%).

The survey provides a few more interesting stats. For instance, 85% of Canadians have 25% of more equity in their home. Apparently we don’t want to stay in debt forever, as 38% of Canadians increased their monthly payment amounts or made a lump sum payment. Yet, 11% of homeowners took equity out of their home, for an average of 58%, with the two main reasons being debt consolidation and renovation.

Surprisingly 76% of the new mortgages written in 2014 were for fixed rate terms, while 69% of outstanding residential mortgages were fixed rate, 24% were variable and 6% were a combination of the two.

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