Mortgage happy!

2006 CIMBL Mortgage Survey

In late September and early October 2006, POLLARA conducted a telephone survey with 1,717 Canadians, including homeowners and renters. A sample of 1,717 Canadians ensures an accuracy of + 2.3%, 19 times out of 20.

When it came to Mortgage satisfaction..

CIMBL Survey




• 88% of Canadians are satisfied with the terms of their current mortgage, despite increases in mortgage rates. 
  
  
• The satisfaction rate is essentially unchanged from 90% in CIMBL’s fall 2005 survey. 
  
• The most common reason cited for being satisfied was “good interest rates” followed by “flexibility”.
  

Mortgage Rates..

• The average mortgage rate for current mortgage holders as of October 2006 is 5.05%, compared to a rate of 4.62% in September 2005. 
  
• These mortgage rates are below posted mortgage rates which suggest that consumers are shopping for rates or are certainly more aware of the fact that there is room for negotiations.
  

Negotiating a Mortgage..

• 33% of Canadians who renewed or refinanced over the past 12 months increased their mortgage by an estimated average of $26,100.  In 2005’s survey, 40% of Canadians increased their mortgage to the tune of $25,100.
  
• 84% of those Canadians who refinanced within the last 12 months stayed with the same lender.
  
• 31% of Canadians consulted with a mortgage broker when looking for a mortgage, an increase from 25% in 2005. 
  

Characteristics of Mortgage Market..

• The outstanding Canadian mortgage credit value increased from $687 billion, up from $617 billion in 2005.
  
• It is projected that the Canadian mortgage credit will grow by 10.8% in 2006 for a year end total of $730 billion.  A further growth of 10.5% to $808 billion is projected for 2007.
  
• The volume of mortgage approvals for 2006 is expected to hit $197.6 billion, 8.5% higher than 2005.
  
• 2007 approvals are projected at $204.5 billion, 3.5% higher than 2006.
  
• Ontario accounted for nearly 50% of the residential mortgage approvals in 2005. British Columbia, Alberta and Quebec accounted for more than 10% of the nation’s mortgage activity. 
  

Consumer’s expectations of the Canadian housing market ..

• When asked “is now a good time or a bad time to buy a new home in your community”, the responses were mixed across the country:
  
  
  
  • The most positive responses came from consumers in Atlantic and central Canada, while negative responses came from respondents in British Columbia and Alberta.
    
  • The most common reason for the negative outlook cited by Western Canadians was high house prices.  Other factors frequently cited for the negative responders include “market conditions”, “availability”, “selection” and “demand”.
    
  
  
• With regards to whether or not Canadians expect price reductions in the housing market, answers varied regionally:
  
  
  
  • The greatest degree of expectations for price reductions is in British Columbia, with one-fifth of respondents expecting housing prices to lower
    
  • The greatest expectations for housing prices to increase came from respondents in Alberta (53%); and expectations for price growth was also high in Manitoba and Saskatchewan (combined response of 49% for the two provinces)
    
    

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The Donald says to - Donald Trump says you should use a broker.

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