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Mortgage Broker Usage Up

Mortgage-Broker 33% of Canadian home buyers used mortgage brokers in 2007, according to CMHC’s newly-released Mortgage Consumer Survey.  That’s up from 27% in 2006.

Just as importantly, mortgage brokers gained market share in all mortgage segments (1st-time buyers, repeat purchasers, renewers, and refinancers).

Its growth that will likely continue.  More people seem to understand that it makes little sense to limit oneself to working with only one lender.  People are now putting a greater value on fast objective advice, and would rather offload the mortgage research and paperwork to someone else.

CMHC’s study included other broker-related findings as well:

  • 95% would recommend their broker to a friend
  • 85% were satisfied with the mortgage process
  • Of those who used mortgage brokers, 92% felt their broker gave them the best deal.  Of those who worked with lenders directly (going to a branch for example), the figure was lower at 82%.

Here’s a few other mortgage statistics from the survey:

  • 75% of recent home buyers plan to pay off their mortgage “as quickly as possible.”
  • 88% are confident they can handle their mortgage debt load.  (Makes you curious about the other 12%.)
  • 41% “strongly agree” with using their home equity to finance other investments.  30% strongly disagree.
  • Over 1/2 of all mortgagors make weekly or bi-weekly mortgage payments.  84% of those people accelerate their payments (i.e.  make an extra payment each year)

CMHC’s survey was based on 1404 active mortgage holders.