CMHC Survey Provides Valuable Insights Into Mortgage Consumers

OTTAWA, ONTARIO--(Marketwired - May 28, 2015) - Canada Mortgage and Housing Corporation (CMHC) released today its Mortgage Consumer Survey. The annual survey, the largest and most comprehensive of its kind, provides insights into the behaviours, attitudes and expectations of Canadians when acquiring, renewing or refinancing a mortgage.

"CMHC's mortgage consumer survey provides valuable information around the habits of active Canadian mortgage consumers" said Nathalie Fredette, Vice-President, Client Relationship Management. "These insights allow mortgage professionals to better understand their customers resulting in a better mortgage experience."

The 2015 Mortgage Consumer Survey also provides new insights about mortgage renewers, who represent more than half of mortgage consumers.

Survey Highlights on Mortgage Renewers

• A majority of mortgage renewers (60%) renewed before the scheduled date.
• The main reason for renewing in advance was to avoid a perceived increase in rates (55%).
• Renewers are taking action to pay off their mortgage sooner.
  • 49% have their mortgage payment set higher than the minimum required payment.
  • 32% have either made a lump-sum payment or increased their regular payment or both since last renewing their mortgage.

Mortgage Broker Market Share by Segment

• Homebuyers (first-time and repeat) (49%) are two times more likely to use the services of a broker than are homeowners (renewing or refinancing) (24%).
• Mortgage broker market share is trending upwards for most market segments. This is particularly evident among repeat buyers where broker market share has increased from 32% in 2012 to 42% in 2015.
• Among first-time buyers, broker market share has reached 55% compared to 48% in 2014.
• Broker share among renewers has remained stable at around 21%.

Mortgage Consumer Loyalty to their Lenders

• Most mortgage consumers remained loyal to their existing lender. This is most prominent among renewers at 86% and lowest amongst first-time buyers where only 47% arranged their mortgage with the financial institution they were dealing with most.
• Although interest rate remains the main reason for mortgage consumers to switch lending institutions (63%), 58% of mortgage consumers indicated that an existing relationship with their mortgage lender/financial institution was the main reason for remaining loyal.

Additional survey findings are available here.

CMHC has been Canada's authority on housing for more than 65 years.

CMHC helps Canadians meet their housing needs. As Canada's authority on housing, we contribute to the stability of the housing market and financial system, provide support for Canadians in housing need, and offer objective housing research and advice to Canadian governments, consumers and the housing industry. Prudent risk management, strong corporate governance and transparency are cornerstones of our operations.

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BACKGROUNDER

Survey Methodology

Over 3,500 active mortgage consumers participated in the on-line survey. Active mortgage consumers include those who have renewed, refinanced or purchased a home with mortgage financing in the past 12 months. In total the survey comprised 58% renewers, 20% refinancers, and 22% recent home buyers.

CMHC has conducted the survey annually since 1999.