CMHC Releases 2023 Mortgage Consumer Survey

Ottawa, May 10, 2023

After a year of quickly rising interest rates, many mortgage consumers are struggling to make ends meet and to manage debt, as indicated in the 2023 Mortgage Consumer Survey released today by Canada Mortgage and Housing Corporation (CMHC).

In January 2023 CMHC surveyed more than 4,000 recent mortgage consumers across Canada to gain key insights into the current state of homeownership, mortgage lending and the expectations and experiences of buyers. Results show that market conditions in 2022 had a big impact on how borrowers felt about their experience with their broker or lender, with overall satisfaction down.

Seventy-four percent of respondents are impacted or anticipate being impacted by the rise of mortgage interest rates. Of those impacted, 49% face difficulty maintaining debt payments, including mortgages. These challenges are impacting how consumers feel about the mortgage buying experience, with consumer perceptions hitting their lowest level in the last five years.

Survey results indicate that 61% of first-time and repeat buyers are feeling uncertain about the homebuying process. Both groups cite paying too much for their home as their top concern.

The survey results also show a notable effort amongst homeowners to improve the energy efficiency of their homes. Energy efficient updates are stated as the third most popular reason to renovate and represent approximately 60% of renovation costs. As well, 59% of homebuyers stated that energy efficiency was an important factor in their home purchasing decision.

Additional highlights:

Those who contracted their mortgage before the rise of interest rates were much more likely to be satisfied, but overall satisfaction with the mortgage professional experience is down.
Thirty-seven percent of buyers who received a monetary gift to help with their home purchase said they would not have been able to purchase a home that meets their needs without it.
Debt consolidation became the top reason for refinancing existing mortgages.
Only 55% of respondents believe the value of their homes will increase in the next 12 months, compared to 84% of respondents in the 2022 survey.
Seventy percent were confident they got the best mortgage deal for their needs, compared to 86% in 2022.
The majority of respondents — 81% — believe that homeownership is a good long-term financial investment, although that figure is down from 91% in 2022.

Quote:

“The current housing market is very challenging and stressful for many buyers and aspiring buyers. One of the goals of our Mortgage Consumer Survey is to help homebuyers and the mortgage professionals who serve them gain a deeper understanding of this environment and increase their chances for a successful, positive experience.”
— Sam Carnovale, CMHC`s Director of Client Relationship Management

View the complete 2023 Mortgage Consumer Survey (PDF).

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to all levels of governments, consumers and the housing industry. Follow us on Twitter, YouTube, LinkedIn, Facebook and Instagram.