SOURCE: Scotiabank


November 20, 2015 10:44 ET

Buying or Selling a Home? Don't Underestimate the Value of a Mortgage Pre-Approval

Recent Scotiabank Poll Reveals Canadians' Strong Propensity to Secure Mortgage Pre-Approval

TORONTO, ON--(Marketwired - November 20, 2015) - A recent Scotiabank poll revealed that 61% of Canadians selling a house agree they would only consider offers from potential buyers who had been pre-approved for a mortgage. The poll was conducted by Leger Marketing during the busy fall home buying/selling time.

The poll also revealed:

  • More than two-thirds of Canadians (69%) say they are likely to get pre-approved for a mortgage before they start shopping for a new home.
  • An overwhelming majority of Canadians (83%) agree that being pre-approved for a mortgage makes an offer more enticing to sellers and adds to the buyers' negotiating power.

"Building a financial plan, and getting pre-approved for a mortgage can help to ensure you are prepared for the important decisions that go along with making an offer -- or even just shopping -- for a new home," says David Stafford, Managing Director, Real Estate Secured Lending at Scotiabank. "It's not all about the rate, the lowest monthly payment, or the highest range of budget you can secure. A knowledgeable financial advisor will help you see beyond your immediate needs to ensure you select the right mortgage option and set you up for success."

Additional national poll results include:

  • The majority of Canadians (62%) agree that the best advantage of a mortgage pre-approval is helping to determine their maximum budget.
  • 45% of Canadians say that the biggest advantage to getting pre-approved for a mortgage is understanding down payment requirements/monthly mortgage amounts.

The poll also revealed regional consumer insights by province, shedding light on the unique attitudes towards pre-approvals from Canadians across the country.

Regional poll result highlights include:

  • Albertans are the most likely (81.9%) of all Canadians to say they are likely to get pre-approved for a mortgage before starting to shop for a new home (and 12.8% more likely than Ontario residents to do so)
  • Just over half (59.4%) of Quebec residents say they are likely to get pre-approved for a mortgage before starting to shop for a new home
  • When compared to those in Quebec, those in Manitoba and Saskatchewan are more likely to agree (69.4%) that if they were selling their home, they would only consider offers from potential buyers pre-approved for a mortgage

Canadians are encouraged to visit the Scotiabank Mortgage Centre for more information about the home-buying process, mortgage options and how to contact a Scotiabank advisor.

About the Survey:

The Scotiabank Poll was conducted by Leger Marketing. The online survey of 1540 Canadians was conducted between Monday, September 28, 2015 and Thursday, October 1, 2015, using LegerWeb. A probability sample of the same size would yield a margin of error of +/- 2.5%, 19 times out of 20.

About Scotiabank:

Scotiabank is Canada's international bank and a leading financial services provider in North America, Latin America, the Caribbean and Central America, and parts of Asia. We are dedicated to helping our 21 million customers become better off through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With a team of more than 87,000 employees and assets of $863 billion (as at July 31, 2015), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information, please visit and follow us on Twitter @ScotiabankNews.

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