A recent survey by the Canadian Association of Accredited Mortgage Professionals says homeowners are happy with the decision to buy their home; they consider mortgage debt to be “good debt.” Their attitudes are the same whether living in Toronto, Calgary, Vancouver where prices continue to rise, or in areas where home prices are stabilizing.
The survey says 55% of homes purchased in 2013 were bought by first-time buyers. It is also said that the average mortgage interest rate is 3.24%, a drop from the average of 3.5 % in the fall of 2012.
“Across Canada, the housing market is slowing and has been on a downward swing since the mortgage policy change in 2012. While the national market may look healthy, activity in the Greater Toronto Area, the Greater Vancouver Regional District and the Calgary area is skewing the numbers high. The rest of Canada sales activity has weakened and house prices are flat and even falling in some communities. Housing has played a key role in driving economic growth and job creation in Canada. Looking ahead, decreased starts and slower price growth will throw off the balance between the housing market and the overall economy.”