An annual survey of mortgage customers has found that most are financially stable and are happy with their lenders and brokers.
CMHC’s Mortgage Consumer Survey asked 4,000 consumers about their experience. All had undertaken a mortgage transaction in the past 12 months; 68% renewals, 15% refinaces, 16% purchases including 9% first-time buyers.
It revealed that 60% of first-time buyers and 69%of repeat buyers were confident that they have enough assets to supplement their needs if they ran into financial difficulties.
Although 85% of first-time buyers said they spent their maximum budget on their new home, 76% were confident they would be able to meet future mortgage payments.
While half of respondents said they would feel comfortable using more technology to arrange their next mortgage transaction, most still wanted face to face interaction with a mortgage professional.
Almost three quarters of all homebuyers – and 69% of renewers - said they were satisfied with their broker.
Sixty-five percent of first-time buyers and 79% of repeat buyers were satisfied with their mortgage lender, as were 84% of renewers.
Information is key
There is still some work to do to help homebuyers understand the homebuying and mortgage process.
Buyers said they would like more information on interest rates, types of mortgages available to them, current and long term mortgage strategies, mortgage or house purchase fees as well as tools to manage their mortgage.
Little more than half of respondents were aware of the latest mortgage qualification rules. About one in five first-time buyers indicated that the rules impacted their purchase decision with most opting to decrease non-essential expenses, purchase a less expensive home or use savings to increase their down payment.