Mortgage Broker

2017 MORTGAGE CONSUMER SURVEY - QUICK FACTS In March 2017, CMHC completed an online survey of 3,002 recent mortgage consumers, all prime household decision-makers who had undertaken a mortgage transaction in the past 12 months. Sixty-five percent had undergone a mortgage renewal, 15% had refinanced their mortgage, and 20% had purchased a home with mortgage financing (11% First-Time Buyers and 9% Repeat Buyers). CMHC has conducted this survey since 1999. It is the largest and most comprehensive survey of its kind in Canada. Online Mortgage Information Gathering • Online research continues to be the most popular way to gather mortgage information. Over three-quarters (76%) of mortgage consumers looked to various online sources to find out about mortgage options and features. • Accessing online mortgage information through mobile devices is steadily increasing. Thirty-one percent of mortgage consumers reported using a mobile device (compared to 27% in 2016). • Among those going online, 50% went to lender websites, 25% to broker websites, and 15% visited both lender and broker websites. Other websites used are interest rate comparison sites (42%), and mortgage industry association websites (23%). • As in previous years, mortgage consumers do a variety of activities online. Seventy-six percent of respondents who went online used a mortgage calculator, 51% did a financial self-assessment, and 29% filled out an online pre-approval form. The Home Buying Process • Sixty-four percent of First-Time Buyers indicated they were renting before purchasing, and 34% lived with family. • Wanting to buy their first home (37%) and feeling financially ready (31%) were the most important reasons First-Time Buyers gave for purchasing a home in the past year. Low interest rates was the most important reason noted by Repeat Buyers at 33%. • Fifty-three percent of buyers were aware of the latest mortgage qualification changes, and 19% noted that it impacted their purchase decision. For example, 11% of buyers said they increased their down payment, 6% purchased a smaller home, 5% purchased in a different location, and 3% delayed their purchase. • Buyers interact with a wide variety of people, and are most likely to consult a real estate agent (72%), or look to a family member or mortgage lender for advice (both at 57%). Forty-one percent reported interacting with a mortgage broker. Of all interactions, real estate agents were noted as most valuable. • About four-in-ten buyers received a recommendation to use a specific lender (38%), and 35% a recommendation to use a specific broker. These recommendations are most likely to come from a real estate agent or family member. • Seventy-one percent of First-Time Buyers accessed savings for their down payment, while 18% received a gift from a family member. • Fifty-five percent of buyers received advice on the amount of down payment to put down. Among those, 24% received advice to put down less, and 69% received advice to put down more for a variety of reasons, such a minimizing overall interest paid and avoiding mortgage loan insurance. • Overall, 40% of buyers mentioned having concerns during the home buying process (compared to 43% in 2016). Among this group, the uncertainty came mostly from unforeseen costs, noted by 57% of buyers, followed by the fear of paying too much for their home, and living with post home-buying costs (both at 51%). • Thirty-two percent of all buyers incurred unexpected expenses during the home buying process, of which immediate repairs were the most common unexpected costs identified. • Thirty percent of buyers reported making repairs or improvements costing over $5,000 since purchasing their current home, and 58% noted they are likely to make repairs or improvements over $5,000 in the next 5 years. Broker Experience • Mortgage broker share of the market is trending upwards with Renewers (from 26% in 2016 to 35% in 2017). The mortgage broker share has remained stable with Refinancers and Recent Buyers (40% and 44% respectively). As in previous years, broker market share is highest among First-Time Buyers at 55%. • The desire to get the best rate or deal (58%), along with valuable advice and recommendations (52%), are the key reasons why mortgage consumers noted obtaining their mortgage through a broker. • Overall, mortgage consumers were satisfied with their experience using a broker (72%). 2017 MORTGAGE CONSUMER SURVEY CANADA MORTGAGE AND HOUSING CORPORATION 2017 MORTGAGE CONSUMER SURVEY 2017 MORTGAGE CONSUMER SURVEY QUICK FACTS

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