Mortgage consumer survey

Conducted since 1999, CMHCs Mortgage Consumer Survey examines consumer behaviour, attitudes and expectations when acquiring, renewing or refinancing a mortgage. It is the largest and most comprehensive survey of its kind in Canada.

In March 2017, CMHC completed an online survey of 3,002 recent mortgage consumers, all prime household decision-makers who had undertaken a mortgage transaction in the past 12 months. Sixty-five percent had undergone a mortgage renewal, 15% had refinanced their mortgage, and 20% had purchased a home with mortgage financing (11% First-Time Buyers and 9% Repeat Buyers). CMHC has conducted this survey since 1999. It is the largest and most comprehensive survey of its kind in Canada.

The home buying process

Fifty-three percent of buyers were aware of the latest mortgage qualification changes, and 19% noted that it impacted their purchase decision. For example, 11% of buyers said they increased their down payment, 6% purchased a smaller home, 5% purchased in a different location, and 3% delayed their purchase. Buyers interact with a wide variety of people, and are most likely to consult a real estate agent (72%), or look to a family member or mortgage lender for advice (both at 57%). Forty-one percent reported interacting with a mortgage broker. Of all interactions, real estate agents were noted as most valuable. Seventy-one percent of First-Time Buyers accessed savings for their down payment, while 18% received a gift from a family member.

Overall, 40% of buyers mentioned having concerns during the home buying process (compared to 43% in 2016). Among this group, the uncertainty came mostly from unforeseen costs, noted by 57% of buyers, followed by the fear of paying too much for their home, and living with post home-buying costs (both at 51%). Thirty percent of buyers reported making repairs or improvements costing over $5,000 since purchasing their current home, and 58% noted they are likely to make repairs or improvements over $5,000 in the next 5 years.

The mortgage process

Providing advice on long-term mortgage strategies can lead to 72% increase in likelihood of new business. In fact, only 25% of those not receiving the advice “totally agreed” they will recommend their mortgage professional to family and friends. This increases to 43% among those that received the advice.

Looking back at their mortgage experience, consumers wished they could have had additional information on several key topics. These key topics include more information on interest rate (24% of lender clients and 53% of broker clients), types of mortgages (25% of lender clients and 46% of broker clients), tools to manage their mortgage (27% of lender clients and 46% of broker clients), and what to do when faced with financial difficulties (26% of lender clients and 45% of broker clients).

Leveraging technology

Almost half of mortgage consumers (48%) agree they would feel comfortable using more technology to arrange their next mortgage transaction, and 40% noted they would be comfortable arranging their entire mortgage transaction using secure online tools and apps, without having to meet their mortgage professional in person. Fifty-six percent of mortgage consumers would like to have access to wealth management tools to help prepare prior to their mortgage transaction, and almost half (49%) would feel comfortable not visiting their bank if they could access secure online tools which provide them with standard banking services.

While technology in the financial industry continues to evolve, the majority of mortgage consumers agree that it is still important to meet face to face with their mortgage professional when negotiating (69%) and finalizing their mortgage (70%).

To view the complete report and findings, contact your CMHC Account Manager, Client Relations, or visit www.cmhc.ca/surveys, where you will find a variety of valuable opportunities to leverage our tools and information to help you manage your business.

The information is provided by CMHC for general illustrative purposes only, and does not take into account the specific objectives, circumstances and individual needs of the reader. It does not provide advice, and should not be relied upon in that regard. The information is believed to be reliable, but its accuracy, completeness and currency cannot be guaranteed. Neither CMHC and its employees nor any other party identified in this Article (Lender, Broker, etc.) assumes any liability of any kind in connection with the information provided. CMHC stakeholders are permitted to distribute the materials at their expense. The above mentioned stakeholder organization is responsible for the distribution of this document.