In this section, we take a look at the opinions of renewers on the mortgage renewal process and homeownership.

Renewers account for 68% of this year’s respondents.

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demographics

  • 26% of Renewers are Gen X (35-44).
  • 59% are married.
  • 65% are employed full-time; 6% are self-employed.
  • 71% owned a single-detached home.
  • 24% have a household income of $60k – $90k; 17% have a household income over $125k.

researching mortgage-related information

  • Online research is most popular but 1/4 of Renewers conducted research offline only.
  • Most use a computer to access online mortgage-related information.
  • The top actions conducted online include using an online mortgage calculator and comparing interest rates.
  • The primary website used to gather mortgage information is by far lender websites.
  • About half indicated they would feel comfortable using more technology to arrange their next mortgage transaction; however, face-to-face interaction is still rated as important.
  • On average, Renewers contact 2.1 brokers and 2.5 lenders.

broker experience

  • Broker share remained steady amongst Renewers.
  • Most find their broker as a result of the broker’s website or a recommendation.
  • The main reason for using a broker is to get the best rate or deal.
  • Renewers would have liked more information on interest rates, mortgage or purchase fees and types of mortgages.
  • 69% of Renewers were satisfied with their broker.

lender experience

  • Lender loyalty increased slightly amongst Renewers between March 2017 and March 2018.
  • When asked how they found their lender, almost half of Renewers indicated that it was their primary lending institution.
  • Besides a better interest rate, a top reason for staying with their lender: convenience/saves time and trust in the existing relationship.
  • Top reason for switching lenders is: better product terms/conditions, and trust in existing relationship.
  • Renewers using a lender would have liked more information on interest rates and types of mortgages.
  • 81% were satisfied with their mortgage lender.

mortgage features and related costs

  • Most Renewers obtained a fixed interest rate, a 5-year renewal term and 11 to 20-year amortization period.
  • Nearly 1/4 indicated their current level of debt, including their mortgage, is higher than expected.
  • Only 68% have a monthly budget.
  • Seventy percent are renovating or plan to renovate in the next 5 years.
  • 30% did not know their renovation costs could be incorporated into their mortgage.

confidence and understanding of mortgage process and mortgage management behaviors

  • 70% believe the value of their house will increase in the next twelve months.
  • 73% felt they were generally comfortable with their current level of mortgage debt.
  • 66% indicated that, if they were to run into some financial trouble, they would have other sufficient assets (investments, other property, etc.) which could be used to supplement their needs.
  • 80% believe that homeownership is a good long term financial investment.
  • 71% felt emotionally attached to their home.

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Date Published: October 18, 2018