News & Resources

2014 Mortgage Trends in Canada: A Year in Review

Dec. 16, 2014
4 mins
A man signs documents at a table

2014 may be drawing to a close, but speculation regarding this year’s mortgage market is far from over. Economists and home buyers alike are waiting with baited breath to see if 2015 will usher in change for borrowing costs and the housing market.

To better understand the market’s future direction, we’ve looked to the past; read on for the strongest trends seen within the mortgage market in 2014.

Looking for the best mortgage rates in Canada? Find them here!

What’s the Best Mortgage Feature?

No surprise here - home buyers value the lowest rate above all else when choosing a mortgage.

But the cheapest interest rate isn’t the only way to save money on your mortgage. Check out these 4 essential mortgage features to ask for to whittle your housing costs even further.

What’s In Store for the 2015 Mortgage Market?

They say all good things must come to an end… but that hasn’t been the case for the record-low mortgage rates that lingered throughout 2014. Several economic reports have stated a rate increase is inevitable and could come as early as the later half of 2015. Do you think fixed or variable rates will go up or down next year? Here’s what our readers have to say:

2014 Mortgage Statistics

The age-old debate of what’s better - a fixed or variable rate - persisted in 2014. While record-low bond yields ensured steep discounting for fixed rates, variable mortgage holders enjoyed the lowest monthly payments all year long as the Bank of Canada made no move to shake up the national cost of borrowing.

Check out our month-to-month breakdowns of this year’s best rates, and how they were affected by national economic data.

Month Mortgage Amount
January $217,000
February $246,000
March $252,000
April $250,000
May $249,000
June $248,000
July $248,000
August $250,000
September $250,000
October $250,000
November $248,000

Month Fixed Rate Bond Yields
January 3.14% 1.57%
February 2.98% 1.63%
March 2.89% 1.69%
April 2.75% 1.67%
May 2.84% 1.5%
June 2.84% 1.57%
July 2.79% 1.52%
August 2.74% 1.52%
September 2.74% 1.66%
October 2.65% 1.56%
November 2.69% 1.46%
December 2.65% 1.47%

Month Variable Rate Prime Rate
January 2.35% 3.00%
February 2.3% 3.00%
March 2.3% 3.00%
April 2.3% 3.00%
May 2.25% 3.00%
June 2.25% 3.00%
July 2.25% 3.00%
August 2.2% 3.00%
September 2.2% 3.00%
October 2.15% 3.00%
November 2.1% 3.00%
December 2.1% 3.00%

How Much Would You Save?

We’ve said it before and we’ll say it again - it’s outstanding how much you can save on your mortgage costs by knowing your options. Comparing the market and picking a competitive rate with great features can shave thousands off what you’ll pay over the course of your amortization. How much would you save? We’ve compared the lowest rate with the highest each month, along with the total mortgage savings based on the average Canadian home buyer.

Who Is The Average Canadian Home Buyer?

Mortgage Amortization Mortgage Term National Average Home Price 5% Down Payment Amount CMHC Insurance Premiums Total Mortgage Value
25 years 5 years $385,200* $19,260 $11,527** $377,467
Month Lowest Fixed Rate Highest Fixed Rate
January 3.14% 7.00%
February 2.98% 7.00%
March 2.89% 5.34%
April 2.75% 5.34%
May 2.84% 5.34%
June 2.84% 5.34%
July 2.79% 5.34%
August 2.74% 5.34%
September 3.14% 7.00%
October 2.65% 5.34%
November 2.69% 5.34%

Month Lowest Variable Rate Highest Variable Rate
January 2.35% 7.00%
February 2.30% 7.00%
March 2.30% 3.10%
April 2.30% 3.10%
May 2.25% 3.10%
June 2.25% 3.10%
July 2.25% 3.10%
August 2.20% 3.10%
September 2.20% 3.10%
October 2.15% 3.10%
November 2.10% 3.10%

Month Savings With The Lowest Variable Rate Savings With The Lowest Fixed Rate
January $294,300 $249,000
February $297,700 $258,600
March $45,600 $151,200
April $45,600 $159,300
May $47,600 $153,500
June $47,600 $153,500
July $48,600 $156,900
August $51,300 $159,900
September $51,300 $159,900
October $54,000 $165,000
November $56,700 $162,600

*Source: All mortgage rate information is from RATESDOTCA

Penelope Graham

A first-time homeowner and newbie investor, Penelope Graham is the quintessential millennial, navigating the world of personal finance and wealth management. A self-professed monetary policy nerd, she follows the often-controversial housing market closely and specializes in mortgage, credit card and personal finance news.

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