Average mortgage interest rate in Canada is 3.24%
Canadians paying off their mortgage debt while rates are still low
Canadians paying off their mortgage debt while rates are still low
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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