Despite all the recent media attention regarding the ‘Mortgage Meltdown’ in the United States, the vast majority of Canadian mortgage holders continue to be well served by the mortgage industry here. That’s just one of several reassuring findings of a recent consumer study by the Canada Mortgage and Housing Corporation (CMHC). According to CMHC’s 2007 Mortgage Consumer Survey, 85% of respondents expressed satisfaction with the mortgage process . Eighty-four per cent (84%) felt they had access to suitable housing options, 88% felt confident they could manage their debt, and 89% of recent purchasers felt that the mortgage choice they made was the best option for them.
Satisfaction with our mortgage industry is one of many factors that contribute to the strong consumer confidence currently enjoyed across the country. In turn, that consumer confidence continues to fuel the Canadian real estate market. Industry forecasts call for another strong year for real estate through 2008. Property values are predicted to appreciate to reach new price records this year, and then surpass them in 2009.
According to the survey, relationships with financial institutions remain very important to Canadian mortgage consumers. In fact, 2007 has seen a slight increase in mortgage consumer loyalty says CMHC. The survey found, on average, 74% of homeowners remaining with their current lender. However, this increase was most pronounced among first-time purchasers and those who refinanced their mortgage. The majority of those who chose to switch to another financial institution when arranging their mortgage did so to obtain a better interest rate, while those who stayed with their existing lenders cited both a good interest rate and good service as the predominate reasons. In addition, the proportion of purchasers using the services of mortgage brokers has risen to 33% from last year’s level of 27%. Even with today’s low mortgage rates, an increasing number of Canadians are deciding to shop around. And why not? Even a difference of a quarter percentage point can add up to thousands of dollars over the life of a mortgage loan.
Thinking of buying or selling real estate and want some creative financing solutions? Contact your Contact: Maureen Reed, Sales Representative office: 416-231-5000 or direct at 416-895-4883, www.resalehomes.name.