As part of its commitment to understanding perceptions about the Canadian mortgage industry, CAAMP (Canadian Association of Accredited Mortgage Professionals) surveyed both consumers and industry members this past fall. I thought it might be interesting to look at some of the results of that survey (my comments in italics).
- Canadians have approximately 68% equity in their home, compared with 43% in the US (probably a combination of our financial prudence as a nation, and our continually increasing house prices)
- 71% of homeowners say they are in a good position to weather a potential downturn in the housing market
- 81% of Canadians would classify mortgages as “good debt” (good debt is called good, because many people believe that the outcome justifies borrowing the money)
- 84% of mortgage-holders could withstand a mortgage payment increase of $200 per month (this is good because with the rock-bottom rates we currently have, interest rates will eventually have to increase, which will mean increased mortgage payments)
- Among those who have paid off their mortgage, the average home was paid off 7 years quicker than the original amortization
- In the past year, nearly four times more people made accelerated payments (36%) than withdrew funds from their mortgage (10%) (a clear indication that Canadians continue to strive to pay down their mortgages more quickly than scheduled – also due to the stricter refinance rules introduced last year)
- 27% of outstanding Canadian mortgages originated through a mortgage broker (33% of first mortgages, but only 20% of renewals/renegotiations) (great to see more 1st-time home buyers use a mortgage broker, but mortgage brokers definitely need to make improvements helping more people get better rates and terms on their renewals and renegotiations!)
- 90% of mortgage broker customers are satisfied with their mortgage experience – higher than the overall industry average of 87%
- Customers of mortgage brokers expect to pay their mortgage off 5 years quicker (compared to 3 years among bank customers) than the original amortization (it’s like I mentioned last week – The Best Mortgage Rate is Not Always the Best Option – advice from a professional mortgage broker can help you pay off your home faster!)
- The average mortgage broker customer received 2.8 mortgage quotes, significantly higher than 1.8 among bank customers (mortgage brokers do the shopping around for you – that’s how we get you the best rates and options: more selection!)
- 82% of customers found out about their mortgage broker from one or more referral sources (if you’re happy with your mortgage broker, make sure to tell your friends and families about them, too – let us help everyone you know save money on their mortgages!)
