2. 2009 Mor t gage Co n su me r S u r ve y Re s u l t s
Canadian mortgage consumers are relatively
knowledgeable about the function and
benefits of mortgage loan insurance (MLI).
Key findings Nearly three-quarters (72%) recognize that
MLI helps Canadians buy a home with a
smaller down payment and 76% believe
from the 2009 survey that MLI provides an important benefit to
the financial system.
• Mortgage clients are optimistic
• Canadians are astute mortgage consumers
• Canadians manage their mortgages prudently 76%
• Client satisfaction levels still relatively strong
believe mandatory MLI provides an
• First-time buyers increase their use of important benefit to the financial system
mortgage brokers
72%
believe MLI can help borrowers buy a home with
Mortgage clients are intentions. Overall, about one-third of a smaller down payment and help build equity faster
recent mortgage consumers anticipate
optimistic leaving or selling their home in the next five
years. Among this group, 87% state family Canadians manage their
An overwhelmingly high proportion of
mortgage consumers (nearly 90%) believe
and or personal circumstances (i.e. growing mortgages prudently
or decreasing family size, medical issues, or
that homeownership is a good long term job transfer), or a general desire for change Several survey findings point to Canadians
investment and this optimism is fairly is the main reason for selling or leaving. being careful in how they manage mortgage
consistent across the country. Another debt including:
indicator demonstrating confidence is that
almost 70% of purchasers are of the opinion Canadians are astute • 73% of first-time buyers used their own
that now is a good time to purchase a home mortgage consumers resources for a down payment
in their community. • 75% of purchasers have a goal to be
Today’s mortgage consumers show what mortgage free sooner than their current
can be interpreted as a fairly high level of amortization
sophistication about the mortgage process • 20% of recent purchasers have already
and what it takes to carry a mortgage. For made a lump sum payment to their
nearly example, 80% were at least aware of the mortgage.
existence of credit scores and one-third, at
90% some time, have actually contacted a credit
agency to obtain their own score. They also
• 40% of all recent mortgage consumers
intend to reduce their amortization at
their next renewal.
have a good understanding of the maximum
of mortgage consumers believe home
amount of their gross (pre-tax) income that Interestingly, as a means of reducing their
ownership is a good long-term investment
should be used to service housing costs and amortization, 30% of mortgage consumers
other debt. Nearly nine-in-ten (87%) intend to use a combination of the
Confidence among mortgage consumers reported that this level should be 40% or mortgage features available to reduce
is also evident in their future moving less of gross income. their amortization.
2 Canada Mortgage and Housing Corporation
3. 2009 Mo r tgage Co ns umer Sur vey Result s
getting the best rate or deal are the most result of the increased use of brokers among
important factors driving client satisfaction, first-time buyers. For repeat buyers and
73% cited by 57% of respondents. refinancers the decline has been more
modest: from 63% in 2007 to 59% among
Mortgage consumers were equally satisfied repeat buyers, and from 71% in 2007 to
of first time buyers use their own
whether they used a lender or broker (79% 66% among refinancers.
resources for down payment - savings or RRSP
lenders vs. 75% for brokers), but for
slightly different reasons. For example, 22%
of those using a broker indicated the main
First-time buyers
75% reason for their satisfaction was based on
the “service” provided, vs. only 11% for
increase their use of
those using a lender. Conversely, those mortgage brokers
of purchasers have goal to pay off
mortgage sooner than original amortization period using a lender were nearly twice as likely
Survey results show that during the past
to mention “a good relationship” as the
twelve months about one-quarter of all
Client satisfaction still basis for their satisfaction (22% for lenders
mortgage transactions were arranged
vs. 12% for brokers).
through the mortgage broker channel. Most
relatively strong notably, broker share among first-time
In the majority of cases (76%) clients
In 2009, the majority of mortgage buyers has increased to 44%, up from 35%
remained loyal to their existing mortgage
consumers (78%) were satisfied with the in 2007. Among other market segments
lender. In the case of first-time buyers, 47%
service provided by either their lender or broker share has remained stable. In
remained loyal to their existing financial
broker. Client satisfaction was also fairly particular, broker share among those
institution. Loyalty was strongest among
consistent across all market segments. renewing their mortgage continues to be
renewers at 90% (up from 83% in 2007).
Compared to 2007, the proportion of those relatively stable at 12%.
For the other three mortgage consumer
satisfied is down consistently by about five segments 2009 has seen a modest decrease
percentage points. Overall, only a minority Demographically, brokers tend to do better
in lender loyalty. This is most evident
of respondents (14%) expressed any degree among younger purchasers aged 25 to 34
among first-time buyers where loyalty has
of dissatisfaction. The survey showed that years (42% share), and female purchasers
fallen to 47% from 67% in 2007, likely a
(43% share).
Client satisfaction levels remain high Broker origination share by customer segment
All segments 34% 44% 78%
44
First-time purchasers 35% 41% 76% 38
35
33
28 31 31
Repeat purchasers 36% 42% 78% 28
27
24 25
Refinancers 29% 48% 77%
16
14
12
Renewers 38% 41% 79% 8
10 20 30 40 50 60 70 80 90 100
First-time purchasers All purchasers Repeat purchasers
Rather satisfied Totally satisfied
Refinancers Renewers
Canada Mortgage and Housing Corporation 3
