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CMHC recently surveyed 2,507 new mortgage consumers. Here’s what they found:
- 70%: Feel now is a good time to buy a home in Canada
- 1/3: Expect to move in the next five years
- 73%: Used their own resources (savings, equity, or RRSP) for their down payment.
- 1/3: Have previously requested their credit score from a credit bureau. (Wow. 2/3 have not?)
- 87%: Believe that 40% is the maximum ratio of monthly gross income that one should spend on debts and housing (It’s interesting that so many people know this. This 40% figure is, of course, a general lender guideline for maximum TDS.)
What matters to homeowners:
- “Getting the best rate”: This was the number one thing that made customers satisfied with their lender or broker.
- “Service”: The top reason driving customer satisfaction with brokers.
- “A good relationship”: The top reason behind customer satisfaction with lenders.
Other interesting market share stats:
- 90%: The number of people up for renewal who stayed with their existing lender. That compares to 83% in 2007. (This is absolutely stunning. Either lender retention departments are getting much better or people are getting more complacent. In this competitive market, you’ve got to shop around—or, better yet, get a professional to do it for you.)
- 25%: The number of mortgages originated by mortgage brokers. CMHC said it was 27% in 2007 (See CMHC’s 2007 Mortgage Survey). (The banks seem to be making a comeback for the time being. They’re most definitely getting more competitive. In addition, we’re seeing a lot of smaller lenders harness the power of the net to drive new business.)
- 44%: The number of first-time buyers who got their mortgage through a broker. (This is up sharply from 35% in 2007.)
Click to enlarge.
Source: The chart and all data are courtesy of CMHC. For a summary of CMHC’s complete findings, click here.