Canadians well served by our mortgage industry

[Joe Crawford]

Despite all the recent media attention regarding the ‘Mortgage
Meltdown’ in the United States, the vast majority of Canadian mortgage
holders continue to be well served by the mortgage industry here.
That’s just one of several reassuring findings of a recent consumer
study by the Canada Mortgage and Housing Corporation (CMHC).
According to CMHC’s 2007 Mortgage Consumer Survey, 85% of respondents
expressed satisfaction with the mortgage process . Eighty-four per
cent (84%) felt they had access to suitable housing options, 88% felt
confident they could manage their debt, and 89% of recent purchasers
felt that the mortgage choice they made was the best option for them.

Satisfaction with our mortgage industry is one of many factors that
contribute to the strong consumer confidence currently enjoyed across
the country. In turn, that consumer confidence continues to fuel the
Canadian real estate market. Industry forecasts call for another
strong year for real estate through 2008. Property values are
predicted to appreciate to reach new price records this year, and then
surpass them in 2009.

According to the survey, relationships with financial institutions
remain very important to Canadian mortgage consumers. In fact, 2007
has seen a slight increase in mortgage consumer loyalty says CMHC.
The survey found, on average, 74% of homeowners remaining with their
current lender. However, this increase was most pronounced among first-
time purchasers and those who refinanced their mortgage. The majority
of those who chose to switch to another financial institution when
arranging their mortgage did so to obtain a better interest rate,
while those who stayed with their existing lenders cited both a good
interest rate and good service as the predominate reasons. In
addition, the proportion of purchasers using the services of mortgage
brokers has risen to 33% from last year’s level of 27%. Even with
today’s low mortgage rates, an increasing number of Canadians are
deciding to shop around. And why not? Even a difference of a quarter
percentage point can add up to thousands of dollars over the life of a
mortgage loan.

Thinking of buying or selling real estate and want some creative
financing solutions? Contact your local Coldwell Banker® sales
professional. It might just be the best call you’ll make all year!