Interesting Canadian Mortgage Factoids (as of June 2010)

The population of Canada (estimated as of 1-Jan-10) is 33,930,800. Therefore 1 of every 3.65 Canadians owns a home, but only 1 of every 6.11 Canadians has a mortgage.

• there are 9.3 million Canadian homeowners
• there are 5.55 million mortgage borrowers
• the total value of outstanding Canadian mortgages is $1.04 trillion (2010 year-end estimate)
• there is $770 billion in mortgages owed on owner-occupied property
• there is $220 billion in mortgages owed on 2nd home and/or rental property
• $220 billion in new mortgages was created in 2009 (purchases, refinances, renewals and transfers)

In terms of homeowner EQUITY:

• the average Canadian mortgage balance is $138,000
• the average home equity for mortgage borrowers is $159,000
• the average loan-to-value ratio is 46%
• only 2% of mortgage borrowers have home equity less than 2%
• only 1% of mortgage borrowers owe more than their home is worth

Mortgage Prepayments

• 16% of mortgage borrowers increased their regular payments during 2009
• 13% of mortgage borrowers made lump-sum payments against their mortgages
• 5% of mortgage borrowers made both forms of prepayment (25% made one or both forms in 2009)
• total lump-sum prepayments average about 1% of the typical borrowers mortgage balance

Mortgage Tidbits

• 325,000 mortgage borrowers have rental suites in the primary residence generating rental income
• 125,000 mortgage borrowers needed rental income in order to quality for their mortgage
• in 2009 400,000 borrowers (12% of borrowers) locked into a fixed rate from a variable rate