Canada Mortgage and Housing Corporation’s 2017 Mortgage Consumer Survey shows some revealing facts about Canadians who completed a mortgage transaction between March 2016 and March 2017. The survey covered a variety of transactions, such as mortgage renewals, refinancing and home purchases. The findings included:
Use of digital technology
CMHC’s 2017 Mortgage Consumer Survey found 76 per cent of mortgage consumers turned to online sources for information about mortgage options and features. The use of mobile devices to access that information is growing steadily, up from 27 per cent in the 2016 survey to 31 per cent in the latest one.
For whatever reason, only slightly more than half of survey respondents did an online financial self-assessment.
The buying process
Tougher mortgage rules were introduced in 2016 with the intention of protecting consumers against taking on unmanageable debt. Those new rules, well covered in the media, included passing a mortgage “stress test” to ensure mortgage holders could weather a climb in interest rates. Yet only 53 per cent of buyers surveyed were aware of the changes.
Of those who did know about them, about one in 10 said they increased their down payment, the same number either purchased a smaller home or a home in a different location, and three per cent delayed their purchase entirely.
Fears and post-buying costs
About 20 per cent of buyers said that, during the buying process, they were afraid they were paying too much for their home. The same number were fearful of post-buying costs.
As well, 58 per cent of buyers said they were likely to make repairs or improvements costing over $5,000 in the next five years.
Brokers and lenders
Use of a broker rather than a lender continues to be highest among first-time buyers (55 per cent).
Over half of mortgage consumers reported being contacted by their mortgage broker after completing the transaction, while less than one-third of those who borrowed directly from a lender like a bank heard from the mortgage provider post-transaction.
On the other hand, far more broker clients than lender clients wished they’d had more information on interest rates, types of mortgages, and what to do when confronted with financial difficulties.
Other findings of the 2017 Mortgage Consumer Survey
While respondents overall felt confident about their buying and mortgage decisions, first-time buyers whose down payment was partially funded by a family gift were less comfortable than others with their level of mortgage debt. They were also less sure they’d know where to turn if they ran into financial trouble.
