On October 18th, 2018, the Canadian Mortgage and
Housing Corporation (CMHC) released its annual Mortgage Consumers Survey. This
survey was conducted online in April of this year and reached 4000 recent
mortgage consumers. Sixty-eight percent of those renewed their mortgage;
fifteen percent refinanced their mortgage while sixteen percent purchased a
home with mortgage financing. Of the sixteen per cent, nine per cent were first-time
homebuyers (forty-nice per cent where Millennials and twenty-two per cent were
new comers) and seven percent were repeat buyers.
survey results highlight that:
- When compared to other
factors such as type of neighbourhood, proximity to work and overall
condition of the home, almost twice as many first-time homebuyers reported
price/affordability as being the most important factor when buying a home.
- While decreasing steadily
for four consecutive years, more than one-third (37%) of home buyers
continue to feel concern or uncertainty when buying a home. Concerns
related to affordability top the list with more than 50% of concerned
buyers worrying about paying too much for their home while nearly
one-third worry about rising interest rates and mortgage qualification.
- Eighty-five per cent of
first-time buyers spent the most they could afford on their home purchase.
However, a majority (76%) are confident that they will be able to meet
their future mortgage payment obligations.
- Sixty per cent of first-time
buyers and sixty-nine percent of repeat buyers indicate that, if they were
to run into some financial trouble, they would have sufficient assets
(investments, other property, etc.) to supplement their needs.
- About 50% of home owners
agreed that they would feel comfortable using more technology to arrange
their next mortgage transaction. With that said, the majority still agree
that it is important to meet
face-to-face with their mortgage professional when negotiating and
finalizing their mortgage.
- Just over half (52%) of
homebuyers were aware of the latest mortgage qualification rules. About
one in five first-time buyers indicated that the rules impacted their
purchase decision with most opting to decrease non-essential expenses,
purchase a less expensive home or use savings to increase their down
- Consumers continue to show confidence
in their home buying and mortgage decisions with 80% of home buyers
believing that homeownership remains a good long-term financial investment
and 66% believing the value of their home will increase in the next 12
- While homebuyers are generally
satisfied with the advice they receive form their mortgage professional,
they would like more information on interest rates, types of mortgages
available to them, current and long term mortgage strategies, mortgage or
house purchase fees as well as tools to manage their mortgage.
Why you need to work with a
Whether it is buying your first home, your next home, refinancing,
planning renovations or looking at credit repair, you should be working with a
mortgage broker. They will provide you with valuable advice and recommendations
for your specific needs. They will
also put together a customized mortgage plan and mortgage management system
tailored to you. Remember, they work for you, not for any one lender. This opens up the kind
of objectivity that allows them to focus on the product that is the best fit for you. One Link Mortgage
Brokers have the experience, education and expertise to guide you successfully
through the mortgage process.
Do you have questions about getting a mortgage or about your
current mortgage? Contact the trusted Winnipeg Mortgage Brokers at One Link today! We are here to help.