New research data collected by the Canadian Association of Accredited Mortgage Professionals (CAAMP) suggests that Canadian mortgage lenders and borrowers, including first time homebuyers, are being extremely prudent with their borrowing and lending.

Key findings of CAAMP’s research include:

• Eighty-six per cent of homebuyers chose fixed rate mortgages. This share fell late in the year as variable rates became more attractive (at 2.25 per cent compared to four per cent for fixed rates).

• Among borrowers who chose fixed rates, a significant number opted for longer terms – less than five per cent chose terms of two years or less. Twenty per cent took three year terms, five per cent four years, leaving 70 per cent with a fixed rate for five years or more.

• The vast majority of people who took out their first mortgage last year borrowed less than they could afford to, as their Gross Debt Service (GDS) ratios are far below allowed maximums, even at the higher interest rates that are used to qualify them for their mortgage.

• The high share of fixed rate mortgages and low GDS ratios for homebuyers are contrary to perceptions that consumers and financial institutions are taking on more risk.

To read CAMMP’s research report click here.

Thinking of Buying or Selling a Home or Condo in Brampton, Caledon, Mississauga, Oakville, Toronto, or Vaughan?
Please contact:

Sara Kareer,
Your trusted friend in the Business

Sales Representative
Century 21 Millennium Inc., Brokerage

(tel) 905-450-8300
(toll-free) 1-888-450-8301
(web) www.SaraKareer.com
(web) www.century21.ca/sara.kareer