Why more mortgage consumers are working with brokers
The CMHC recently released their 2017 Mortgage Consumer Survey results, which outline key trends about home buying and home buyers in Canada.
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. [CMHC]
Most notably from the survey, is that more and more mortgage consumers are choosing to work with brokers, and the results give us a lot of insight into why.
- More mortgage renewers are working with brokers, 35 per cent in 2017, compared to 26 per cent in 2016.
- 40 per cent of mortgage refinancers used a broker.
- 44 per cent of recent buyers used a mortgage broker.
- The highest demographic of mortgage borrowers using a broker, is first-time buyers at 55 per cent.
- 58 per cent of those who went with a broker, did so to find the best rate.
- 52 per cent of those who went with a broker, did so for the valuable advice and due to the recommendations of others.
- 72 per cent of buyers who went with a broker, were satisfied with their experience.
- 35 per cent of home buyers received a recommendation to use a specific broker, and most of those recommendations came in from REALTORS® or family members.
- 54 per cent of those who used a broker were contacted by their broker following the transaction, as opposed to only 31 per cent for those with a lender.
In addition to the notable wins for brokers in the industry, there were some areas that need to be improved upon for mortgage consumers. For instance, many buyers felt they were lacking in receiving information on a variety of topics.
- Information on interest rates: I have extensive information, including current rates, available on my website right here.
- How to manage a mortgage: my blog is a huge resource for all things mortgages and mortgage management, with hundreds of articles already in the inventory, and new ones published every week.
- How to face financial difficulty: again, there’s lots of resources on this topic on my blog, but here’s some recent articles that pertain to this:
If you have questions about mortgages, the home buying process or managing your money, please feel free to contact me.
