Overall, most homebuyers were generally satisfied with their experience with their lender or mortgage broker.
We can state this with confidence because we asked homeowners across Canada about it in the 2019 Mortgage Consumer Survey. We learned how lender and broker clients feel about the home buying process with their mortgage professional – and any key differences.
Buyers who got a mortgage through a lender were satisfied with their choice of lender.
Roughly, 79% were satisfied with their choice of mortgage lender. In fact, 71% said they would likely use the same lender again for their next mortgage transaction. The most common reasons buyers gave for choosing a lender were the interest rate offered and the level of service they received.
Lender loyalty among first-time homebuyers has increased.
Results from this year’s survey show that lender loyalty among first-time buyers has increased slightly at 54% compared to 52% one year ago. Loyalty among repeat buyers has decreased slightly at 72% compared to 75% in 2018. On average, buyers in the 35-44 age group tended to be the least loyal. The main reasons buyers gave for switching or staying with their lender were to get a better interest rate.
Following up after the deal not fully embraced by lenders or brokers.
Only about a third (35%) of all the homebuyers surveyed were contacted by their mortgage lender after their transaction was completed. Lenders have an opportunity to more consistently follow-up with their clients, which could in turn further increase loyalty.
Less than half of the buyers (46%) said their brokers followed up with them after they bought their home. Despite the low incident of follow-ups, most were satisfied with their brokers and/or would likely recommend them to others (76% and 69% respectively).
Buyers used mortgage brokers to get better interest rates, to save time or because of advice they received.
A total of:
- 77% of buyers who used a broker said their mortgage broker gave them advice on rates and terms
- 75% said they were offered advice on choosing a mortgage they could afford
In-person connections are still important to homebuyers.
In an increasingly technological world, both lender and broker clients still value in-person connection throughout the home buying process. Nearly three quarters (73%) of buyers agree it is important to discuss face-to-face with their mortgage professionals. However, half would feel comfortable using more technology to arrange their next mortgage transaction (i.e. their mortgage renewal).
Buyers don’t want to manage the home buying process alone.
There is a significant decrease in the comfort level of managing the entire home buying process and mortgage transaction without having to meet with a mortgage professional (38% in 2019 compared to 45% in 2018).