The recent annual Mortgage consumer Survey released by Canada Mortgage and Housing corporation (CMHC), showed that affordability was key for home buyers in 2019 and part of our commitment as brokers, is to help you find the best mortgage option for you.
Interestingly, it showed that home buyers were big fans of the stress test that took effect in January 2018. Up to 65% of the buyers believe the mortgage qualification stress test will prevent Canadians from taking on a mortgage they can’t afford in the future. The number of home buyers who are aware of the qualifying changes, have risen from 52% (2018 Mortgage consumer Survey) to 59%. The vast majority also said that the new rules made no impact on their decision to buy a home.
Interest rates may have had more of a significant impact on home buyer’s purchase decisions. in 2018, 32% of home buyers obtained an interest rate between 2.5% – 2.99% while 43% of home buyers got an interest rate between 3% – 3.49%. As low rates persist, so does buyer demand.
The main reasons for using a broker was not only rates, but also to save time and because of the advice they received. It showed that consumers may be generally satisfied with their mortgage experience, but lender loyalty is just over 50%. Many buyers were happy to go with the mortgage provider that would give them the best deal.
More than three quarters of buyers said their mortgage broker gave them advice on rates and terms and 75% said they were offered advice on choosing a mortgage they could afford. This means that brokers are clearly considered true advisors during the home buying process. The survey also highlights the fact that consumers feel they benefit from the personal advice. 73% thought it was important to have a face-to-face interaction with their mortgage professional and half felt comfortable using more technology with their next mortgage transaction.
As a first-time-homebuyer, this will be one of the biggest financial decisions you will make in your life, so contact one of our brokers. We understand that you have a busy schedule and will work with your schedule, setting a meeting at a time and place of your convenience.
Original Article: www.mortgagebrokernews.ca