Winnipeg Mortgage Brokers - CMHC 2018 Mortgage Consumer Survey Results

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.

The 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 payment.
  • 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 months.
  • 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.

Source: CMHC

Why you need to work with a Mortgage Broker

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.