The survey, released today by the Bank of Montreal, shows Canadian homeowners have made some headway in becoming debt free and comes less than a week before the Flaherty’s new mortgage rules take effect.
That being said, according to Laura Parsons, a mortgage specialist with BMO, the average mortgage timeline will likely decrease as a result of 25 year amortization, which comes into effect on July 9.
Parsons also said the lowering of the refinancing limit to 80 per cent of home equity - as included in the new measures - may also encourage some owners to pay down their mortgage faster to increase refinancing options later.
While the survey shows an average of 15 years left on a typical Canadian mortgage, it doesn’t specify the number of mortgages that have been paid out or the age of respondents.
Mortgage brokers are concerned the mortgage regulation may be out of sync with the realities of the market. The survey adds weight to their assertion Canadians already acting responsibly in terms of housing debt.
The Leger Marketing survey was completed on-line from March 19 - 22, 2012, with a sample of 1,000 Canadian homeowners