Mortgage Consumer Insights by CMHC

Canada Mortgage and Housing released their survey of mortgage consumers for 2017. The following highlights draw attention to some very interesting insights.

20% Buyer Mortgages, 65% Mortgage Renewals

Of mortgage transactions within the last 12 months, the largest number, 65% of mortgage consumers, renewed their mortgage and 15% refinanced. Of the 20% that were home buyers, 11% were first-time buyers and 9% repeat.

76% Gather Info Online: Over three quarters (76%) used online research to gather information about mortgage options and features. Online activities include using a mortgage calculator, doing a financial assessment and 29% filled out an online pre-approval form. Lender websites at 50% were most popular and broker sites at 25% were the second most visited.

About Home Buyers: Of first-time buyers, 64% indicated they were renting and 34% lived with family before buying. Wanting to buy their first home and feeling financially ready were the most important reasons for buying.

Downpayment: 71% of first-time buyers used their own savings for their downpayment and 19% used a gift from a family member.

Those with a gifted downpayment were “less comfortable with their current level of debt”, didn’t know who to turn to if in financial troubles, and were less likely to find getting a mortgage easy and straightforward.

Of repeat buyers, low interest rates were the biggest reason for buying.

All Buyers

53% of buyers were aware of the latest changes to mortgage qualifying rules and “19% noted it impacted their mortgage decision” in the following ways: 

  • The largest number, 11% increased their downpayment;
  • Others purchased a smaller home or bought in a different location;
  • 3% delayed buying altogether.

People Buyers Interact With

Of the spectrum of people buyers interact with, they were most likely to consult with their real estate agents (72%), and further noted that real estate agents were most valuable. 57% look to family members and the same percentage look to their mortgage lender. Mortgage broker consultation was cited at 41%. 

Three Major Concerns About Home Buying

Major concerns about the home-buying process were mentioned by about 40% of buyers:

  1. About 57% stated unforeseen costs,
  2. Then paying too much for their home, and
  3. “Living with post-home buying costs, about 51%.

 The report further covers the mortgage process and leveraging technology. For a copy of the complete report, Google: 2017 Mortgage
Consumer Survey CMHC. 

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