Monitoring industry trends is a great way for mortgage professionals to stay on top of changing market conditions and identify needs and opportunities within their customer base.
One way to stay in-the-know about the latest trends is through the Teranet Market Insight Report. This report delivers a comprehensive analysis and new insights into the real estate market in Ontario, featuring data from Teranet’s data scientists.
In December 2019, we released Part 1 of a two-part series focusing on title data trends since 2010 — specifically second charges registered on title. This is particularly important for lenders who need to evaluate risk in their portfolio.
Here are some of the highlights that we found:
The Dollar Amount of Second Charges Registered on Title Has Continued to Increase
Over the past ten years, the number of second charges registered on title has had peaks and dips. However, the dollar amount continued to increase.
In 2010, 88,020 second charges were registered on title, with a dollar value of $12.70 billion.
In 2017, 88,030 second charges were registered on title, with a dollar value of $23.97 billion — almost double that of 2010.
This signifies that Ontario borrowers have had to register larger second charges to keep up with high house prices.
As of October 2019, the total volume of second charges registered was 63,330. The total dollar amount was $17.92 billion.
The Average Transaction Amount and Length of Time Between Charges are Increasing, Too
Between 2010 and 2019, the average transaction amount registered on a property increased by more than $100,000.
In 2010, the average amount registered was $144,000. By 2019, it reached a peak of $273,000.
Homeowners also extended the amount of time between their first and second charges by almost a full year. In 2010, the average length of time was 644 days. As of 2019, that had increased to 930 days, indicating that buyers are waiting longer before applying for a second charge.
Single-Detached Homes are Seeing the Most Second Charges Registered, But Volume is Going Down
As of October 2019, single-detached homes received the majority of second charges registered of any property type (compared to condos, row houses, seasonal properties, and semi-detached homes). They received 74.57% of the market share. The next closest contender was condos at 12.38%.
That said, the market share is shifting. In 2010, single-detached homes received 80.04% of second charges registered, but by 2019 that had decreased to 74.57%. In comparison, all other property types saw increases in those same years. Condos, in particular, had a big leap, going from 8.50% in 2010 to 12.38% in 2019.
Discover More Second Charge Trends
There are more second charge registration trends where these came from: in the Teranet Market Insight Report.
Read the December 2019 edition here, which focuses on second charges registered on title, to discover the total volume and dollar amount by property type, geographic data, and more.
Discover more in-depth property data you can use in your mortgage business today. Purview offers solutions for mortgage and financial professionals that give you the power of more. More information. More deals. More referrals. Learn all about these solutions by calling 1-855-787-8439 or visiting www.purview.ca.