Mortgage Broker

Lender Experience • Results from this year's survey show that lender loyalty among Renewers stands at 79% (81% one year ago), and at 66% for Refinancers (68% one year ago). Repeat Buyers recorded a drop at 62%, compared to 73% one year ago. Finally, compared to other consumer segments, lender loyalty continues to be lowest amongst First-Time Buyers where 57% arranged their mortgage with the financial institution they were dealing with the most. • When asked to select among several reasons for remaining loyal or for switching lenders, the main reason given was wanting a better interest rate (36% for consumers switching lenders, and 37% for those staying with their existing lender). Another common reason given for switching was better product terms and conditions. Amongst other reasons for staying, existing relationship with current lender, and more convenience were the most common reasons identified. • Thirty-eight percent of mortgage consumers used a branch lender to arrange their current mortgage, 33% used a mobile mortgage specialist, and 21% used a lender financial planner. Regardless of the channel used, the majority of consumers (79%) are satisfied with their lender. The Mortgage Process • When obtaining their current mortgage, the majority of mortgage consumers received a wide range of advice from their mortgage professional, including specifics regarding fixed and variable rates and mortgage terms and conditions (77%), and advice on long-term mortgage strategies (70%). Furthermore, almost six-in-ten mortgage consumers were also offered other types of financial products (57%). • Providing advice on long-term mortgage strategies can lead to 72% increase in likelihood of new business. In fact, only 25% of those not receiving the advice "totally agreed" they will recommend their mortgage professional to family and friends. This increases to 43% among those that received the advice. • Fifty-four percent of consumers who used a broker and 31% who used a lender were contacted by their mortgage professional following their mortgage transaction. • Looking back at their mortgage experience, consumers wished they could have had additional information on several key topics. These key topics include more information on interest rate (24% of lender clients and 53% of broker clients), types of mortgages (25% of lender clients and 46% of broker clients), tools to manage their mortgage (27% of lender clients and 46% of broker clients), and what to do when faced with financial difficulties (26% of lender clients and 45% of broker clients). • Consumers generally feel confident about their home buying and mortgage decisions. That being said, First-Time Buyers who received a gift from family as part of their down payment were less comfortable than others with their current level of mortgage debt. They were also less confident about knowing where to turn in the event that they run into financial trouble. Similarly, they were less likely to have other assets to supplement their needs should they run into financial trouble. Overall, First-Time Buyers who received a gift down payment were also less likely to find the process of getting a mortgage easy and straightforward. Leveraging Technology • Almost half of mortgage consumers (48%) agree they would feel comfortable using more technology to arrange their next mortgage transaction, and 40% noted they would be comfortable arranging their entire mortgage transaction using secure online tools and apps, without having to meet their mortgage professional in person. • Fifty-six percent of mortgage consumers would like to have access to wealth management tools to help prepare prior to their mortgage transaction, and almost half (49%) would feel comfortable not visiting their bank if they could access secure online tools which provide them with standard banking services. • While technology in the financial industry continues to evolve, the majority of mortgage consumers agree that it is still important to meet face to face with their mortgage professional when negotiating (69%) and finalizing their mortgage (70%). • Consumers using social media to gather mortgage information is increasing, reaching 35% this year (compared to 29% in 2016). Facebook (57%), YouTube (34%) and blogs (29%) are the most popular platforms among those looking to social media. • The use of social media to gather mortgage information is higher among broker clients (59%, compared to 17% for lender clients), and among First-Time Buyers (42%, compared to 36% for Renewers, 29% for Refinancers, and 22% for Repeat Buyers). • Finally, the use of social media is higher with mortgage consumers born outside of Canada (43%, compared to 33% for those born in Canada). 2017 MORTGAGE CONSUMER SURVEY CANADA MORTGAGE AND HOUSING CORPORATION 2017 MORTGAGE CONSUMER SURVEY

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