What percentage of Canadian mortgages for on a 2-Year term?

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Mar 1st, 2023 6:01 am

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Feb 27th, 2023 12:20 pm

learner321 [OP]: Newbie; Jul 13, 2022; 37 posts; 38 upvotes; Ontario

Feb 27th, 2023 12:20 pm

What percentage of Canadian mortgages for on a 2-Year term?

It seems like a basic question, and yet it seems impossible to find this data through Google.

More specifically, I would like to know a breakdown of the following info:

What percentage of Canadian/Ontario mortgages are:

1) Fixed vs variable?
ANSWER: 33% of all mortgages in Canada were variable rate, as of 2022 - from a google search.

2) What is the percentage breakdown of mortgages for various term lengths? (i.e. what percentage of existing mortgages are locked in for a 2-year term, 3-year term etc).

I am starting to do some research for purchasing our first home, and I would like to find this information for consideration.

Does anyone know the answer, or where this answer can be found? I thought I had good Google-Fu skills, but I can not seem to crack it this time.

Cheers

12 replies

Feb 27th, 2023 2:28 pm

emdubya: Member; Oct 13, 2011; 201 posts; 450 upvotes; OTTAWA

Feb 27th, 2023 2:28 pm

Go look at CIBC's recent earning report. They break down all their mortgage holdings. Then you can extrapolate that to the broader market.

Feb 27th, 2023 2:46 pm

Toukolou: Deal Fanatic; Dec 4, 2009; 8012 posts; 3828 upvotes

Feb 27th, 2023 2:46 pm

2yr mortgages are exceptions, most mortgages are 3/5 yr fixed/variable. I would say it represents a tiny proportion. And from what I've seen, 2yr rates are the pits.

"I'm a bit upset. I've been grab by the back without any alert and lubrification"
Lucky

Feb 27th, 2023 3:53 pm

learner321 [OP]: Newbie; Jul 13, 2022; 37 posts; 38 upvotes; Ontario

Feb 27th, 2023 3:53 pm

emdubya wrote: ↑ Go look at CIBC's recent earning report. They break down all their mortgage holdings. Then you can extrapolate that to the broader market.

Ahh great idea, thank you.

Feb 27th, 2023 3:53 pm

learner321 [OP]: Newbie; Jul 13, 2022; 37 posts; 38 upvotes; Ontario

Feb 27th, 2023 3:53 pm

Toukolou wrote: ↑ 2yr mortgages are exceptions, most mortgages are 3/5 yr fixed/variable. I would say it represents a tiny proportion. And from what I've seen, 2yr rates are the pits.

I understand. But I would still like to look at the data on this to see actual percentages. I know the proportion of 2-year terms are "low".

Feb 27th, 2023 4:37 pm

fogetmylogin: Deal Addict; Nov 13, 2013; 4233 posts; 2669 upvotes; Ottawa

Feb 27th, 2023 4:37 pm

learner321 wrote: ↑ I understand. But I would still like to look at the data on this to see actual percentages. I know the proportion of 2-year terms are "low".

It's normally a rounding error. So 3, 4 or 5% what difference does it make? Now recently it has become much more popular as people chase lower rates and bank on a return to normality (defined by them as a return to abnormally low rates).

Regardless why does it matter? You think that is key to a housing crash and when it might occur?

Feb 27th, 2023 11:00 pm

MrNobody: Jr. Member; Jan 31, 2014; 183 posts; 369 upvotes

Feb 27th, 2023 11:00 pm

No need to spend hours digging through earnings reports of individual banks and then trying to aggregate the numbers.

Just ask ChatGPT

+2

Feb 28th, 2023 10:42 am

learner321 [OP]: Newbie; Jul 13, 2022; 37 posts; 38 upvotes; Ontario

Feb 28th, 2023 10:42 am

MrNobody wrote: ↑ No need to spend hours digging through earnings reports of individual banks and then trying to aggregate the numbers.

Just ask ChatGPT

I totally forgot, thanks!
I don't see an option to add an image:

While I don't have access to the most up-to-date data on Canadian mortgages, historical data shows that the percentage of mortgages locked into different term lengths can vary depending on market conditions and interest rate trends. However, as a rough estimate, based on historical data, here is an approximate breakdown of the percentage of Canadian mortgages locked into various term lengths:

1-year term: 5-10%
2-year term: 10-15%
3-year term: 10-15%
4-year term: 5-10%
5-year term: 50-60%
Over 5-year term: 5-10%
Again, it's important to note that these percentages are rough estimates and can vary depending on the current state of the Canadian mortgage market.

+1

Feb 28th, 2023 11:05 am

learner321 [OP]: Newbie; Jul 13, 2022; 37 posts; 38 upvotes; Ontario

Feb 28th, 2023 11:05 am

I will also add, I had a skim through CIBC's recent earnings report, and did not find what percentages of their mortgages and locked into the various term limits, not sure if I could have missed something:

https://www.cibc.com/content/dam/cibc-p ... ort-en.pdf

EDIT:
So apparently this info is not included in the report above, but it should be included in their annual report below... I just can't seem to find it:

https://www.cibc.com/content/dam/cibc-p ... -22-en.pdf

Feb 28th, 2023 11:40 am

Jhopes: Newbie; Sep 27, 2016; 58 posts; 5 upvotes

Feb 28th, 2023 11:40 am

Does anyone know why we have to constantly renew our mortgage? Why is it that in the States when they purchase a home they can lock in for 20 (or plus years) at whatever rate they signed up at - why isn't this possible here?

Feb 28th, 2023 11:47 am

learner321 [OP]: Newbie; Jul 13, 2022; 37 posts; 38 upvotes; Ontario

Feb 28th, 2023 11:47 am

Jhopes wrote: ↑ Does anyone know why we have to constantly renew our mortgage? Why is it that in the States when they purchase a home they can lock in for 20 (or plus years) at whatever rate they signed up at - why isn't this possible here?

So we can get adequately screwed ¯\_(ツ)_/¯ ?

+2

Mar 1st, 2023 5:30 am

JayLove06: Deal Expert; Feb 29, 2008; 19643 posts; 18190 upvotes; Tarrana & The Ri…

Mar 1st, 2023 5:30 am

Jhopes wrote: ↑ Does anyone know why we have to constantly renew our mortgage? Why is it that in the States when they purchase a home they can lock in for 20 (or plus years) at whatever rate they signed up at - why isn't this possible here?

Because this is Canada and if there’s a way to screw people, we will take it. Other countries so it this way as well. Very hard ro get ahead in Canada if you are middle class.

Mar 1st, 2023 6:01 am

SLee: Deal Fanatic; Jul 23, 2002; 5458 posts; 1871 upvotes

Mar 1st, 2023 6:01 am

Jhopes wrote: ↑ Does anyone know why we have to constantly renew our mortgage? Why is it that in the States when they purchase a home they can lock in for 20 (or plus years) at whatever rate they signed up at - why isn't this possible here?

Fannie Mae and Freddie Mac, giant US government backed entities that are setup to create these markets. To do this in Canada, you'll need CMHC to buy and guarantee loans of that length and do it at an interest rate that's only a couple of percent higher than what the Canadian government pays to borrow long-term.

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