CMHC survey paints a bright picture of the Canadian mortgage consumer
The newly released 2011 Mortgage Consumer Survey is full of interesting data that needs time to be fully absorbed and see how market participants may react to the findings. For you, the consumer, a brief summary would be just enough to figure out how you may fit in the numbers.
IS REAL ESTATE A GOOD INVESTMENT?
- A large majority of recent homebuyers (86%) agree that homeownership is a good long-term investment
HOW LONG WAS THE PLANNING PROCESS?
- On average nationally, homebuyers took 11 months to plan their purchase
WHERE DO YOU GO FOR A MORTGAGE ADVICE?
- After deciding to look for information about mortgage options, half (51%) of recent mortgage consumers started with a mortgage or financial professional. The remaining half reported having started with family or friends, the Internet, or a real estate agent. However, throughout the process of obtaining a mortgage, 81% of recent buyers, at some point, relied on a mortgage professional (either a mortgage lender or mortgage broker) for advice and consultation.
DID YOU USE ONLINE INFORMATION?
- 22% rely solely on the on-line channel and more than a third (35%) exclusively used off-line resources. The balance (43%) reported using both on-line and off-line resources. 11% of recent first time buyers reported the use of social media platforms for researching mortgages, up from 3% the previous year.
HOW LONG DID IT TAKE TO ARRANGE THE MORTGAGE?
- Recent buyers took on average five weeks from the time research began until they made their final mortgage decision.
WHERE MORTGAGE PROFESSIONAL HELPFUL?
- 82% of recent buyers indicated that their particular mortgage professional took the time to fully understand their financial situation and mortgage needs.
DO YOU USE THE PRE-PAYMENT PRIVILEGES?
- 39% of recent buyers have their mortgage payment set higher than the minimum required. Further, since taking out their mortgage, 20% of recent buyers have already made a lump sum payment to their mortgage.