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The CMHC’s latest annual survey of mortgage consumers reveals some interesting insights into the habits and thoughts of those we do business with. Sixty per cent of mortgage renewers do so before the scheduled date with most doing so to avoid perceived mortgage rate increases. Almost half of mortgage consumers pay more than their minimum payment to pay off the loan sooner and 32 per cent have made a lump sum payment or increased their regular payment since their last renewal.
First-time and repeat homebuyers are two times more likely to use the services of a mortgage broker than homeowners who are renewing or financing (49 per cent compared to 24 per cent). Broker market share among repeat buyers has increased from 32 per cent in 2012 to 42 per cent in 2015. For first time buyers the market share for brokers has increased from 48 per cent last year to 55 per cent in 2015. The market share among renewers is stable at 21 per cent.
The survey also shows that there is a high level of loyalty towards mortgage lenders especially for renewers (86 per cent) with first time buyers less likely to use a lender that they already deal with (47 per cent). Rates are important when switching lenders (63 per cent) but so is an existing relationship (58 per cent).