OTTAWA Canada Mortgage and Housing Corporation’s (CMHC) 2007 Mortgage Consumer Survey shows that the overwhelming majority of Ontarians who recently purchased a home, or renewed or refinanced a mortgage are confident in their ability to manage their mortgage debt.
The fact that Ontario homeowners are confident in their ability to manage their mortgages is a good sign for the province’s mortgage market,’ said Pierre Serre, Vice-President, Insurance Product & Business Development, CMHC. The survey also confirms that Ontarians, like most Canadians, remain fundamentally cautious when it comes to managing their mortgage debt.’
The 2007 survey focused primarily on recent purchasers and also for the first time included questions on homeowner behaviour regarding mortgage debt re-payment since arranging their mortgage.
In Ontario, 92 per cent of mortgage consumers felt confident in their ability to manage their debt, over the national average of 88 per cent. Also, the survey finds that 77 per cent of those who recently purchased a home intend to pay it off as quickly as possible and more than half agreed that, whenever possible, they would use extra money to pay down the principal on their mortgage. The majority of homebuyers in Ontario (57 per cent) are making weekly or bi-weekly mortgage payments, and the vast majority of these are on an accelerated basis which has the effect of shortening the time required to payoff the mortgage. A significant proportion (42 per cent) of purchasers in Ontario also intend to reduce their mortgage amortization period when their mortgage comes up for renewal.
Overall, 83 per cent of mortgage consumers in Ontario were satisfied with the services they received from either their mortgage lender or broker. CMHC’s survey also reveals that a significant proportion of mortgage consumers in Ontario (61 per cent) were totally satisfied with the services they received compared with 52 per cent in 2006.
In addition, 32 per cent of Ontario mortgage consumers buying a home used the services of a mortgage broker to arrange their mortgage, on par with the national average of 33 per cent.
CMHC’s Mortgage Consumer Survey is conducted each fall to examine consumer behaviour, attitudes and expectations when acquiring, renewing or refinancing a mortgage. The survey is based on a national probability sample of more than 1,400 recent active mortgage consumers comprised of first-time buyers, repeat buyers, mortgage renewers and refinance consumers. The results for the entire sample are accurate within 2.6 percentage points 19 times out of 20.
As Canada’s leading mortgage insurer, CMHC shares a wealth of knowledge and housing expertise for the benefit of Canadians. CMHC’s mortgage insurance has opened doors for millions of Canadians, giving them the assurance and piece of mind that comes with homeownership.
As Canada’s national housing agency, CMHC draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes homes that will continue to create vibrant and healthy communities and cities across the country.