According to new data released by the Canadian Association of Accredited Mortgage Professionals, more residents took money out from their homes during 2010.
In all, $26 billion in home equity was taken by Canadians during 2010, an increase from 2009’s total of $20 billion. Among the most popular reasons that Canadians did so was to fund home renovations. Of the 2,000 residents responding to CAAMP’s survey, 36 percent stated this was the case for their withdrawn funds.
Investments and debt consolidation were the other most popular answers, garnering 28 and 19 percent, respectively.
“As economic confidence returns in Canada, many survey respondents have told us they now feel comfortable using some of that equity to improve their homes and to invest,” CAAMP CEO Jim Murphy said.
Canadian homeowners, on average, have home equity worth $222,000, or 66 percent of their home’s value. Furthermore, roughly 3 million Canadians currently have no debt remaining on their home loans, while 79 percent of mortgage holders have at least 25 percent equity in their current residence.