Members of Generation X (aged 35-44) made up the largest demographic of renewers in the 2018 Mortgage Consumer Survey. Together, Generation Xers represented about one quarter (26%) of recent mortgage renewers. Some quick statistics on renewer respondents: 59% were married, 65% were employed full-time, 6% were self-employed, and 71% owned a single-detached home.
Here’s more of what we learned about renewers, powered by the 2018 Mortgage Consumer Survey.
70% of renewers were renovating or plan to renovate in the next 5years. Interestingly, though, 30% didn’t know their renovation costs could have been incorporated into their original mortgage at time of purchase. When discussing the needs of your home buying clients, remember that CMHC Improvement allows the purchase of an existing residential property with improvements and new construction financing.
When searching for mortgage-related information, the majority of renewers used a computer as their main research method. Their top tasks were: using a mortgage calculator and comparing interest rates. About half of renewers indicated they would feel comfortable using more technology to arrange their next mortgage. However, face-to-face interaction was still rated as important.
Only 68% of renewers indicated having a monthly budget. Additionally, nearly one quarter noted that their current level of debt, including their mortgage, is higher than expected. Yet 66% indicated that, if they ran into financial difficulty, they had other assets (investments, other property, etc.) they could use to help meet their needs.
Lender loyalty increased slightly among renewers and remained steady with brokers. Almost half indicated that the lender they chose to renew with was their primary lending institution. Those renewers who used a broker found them through the broker’s website or through a recommendation.
The top reasons for staying with their lender, besides a better interest rate, were because it’s convenient / saves time and trust in the existing relationship
The main reason identified for using a broker was to get the best rate or deal.
Still, mortgage professionals could further increase satisfaction with renewers. How? By providing more information on interest rates, types of mortgages and mortgage or purchase fees. CMHC’s Step-by-Step Guide is a valuable tool for mortgage professionals. Sharing it with homebuyers will help ensure they feel confident throughout the entire homebuying process.
Renewers showed a significant level of confidence. The majority (70%) believed the value of their house would increase in the next 12 months. Additionally, 80% believed that homeownership is a good long-term financial investment. Overall, 71% felt emotionally attached to their home.