TORONTO, May 16 /CNW/ - The un-official start to the cottage season is
here, and as Canadians look for ways to make the most of their summer, many
are looking to the country's hot recreational property market to maximize
their seasonal enjoyment. And, even as prices continue to rise and more people
turn to a mortgage provider to realize their vacation property dreams,
consumers still want to pay down their mortgage as quickly as possible.
According to a recent poll conducted on behalf of Mortgage Intelligence
Inc. and GMAC Residential Funding of Canada Limited:- One in seven Canadians (14 per cent) currently own a vacation
property and one in four (28 per cent) would like to purchase a
vacation property in the future.
- Forty-one per cent of vacation property owners are over the age of
55, while 47 per cent of those who wish to purchase are between the
ages of 35 and 54.
- Fifty-four per cent of Canadians would like to pay down their
vacation property mortgage in 15 years or fewer. This is particularly
true of retirement-age Canadians, with 83 per cent of those aged 55-
plus preferring to pay down their mortgage within this time frame.
- Significant regional preferences exist for the types of recreational
properties people wish to buy:
- Consumers in Quebec prefer to purchase chalets (39 per cent).
- Forty-nine per cent of people in Ontario wish to purchase a
waterfront property.
- Waterfront properties are also most popular in British Columbia
(39 per cent), Manitoba/Saskatchewan (47 per cent) and the
Atlantic Provinces (30 per cent).
- People in Alberta prefer all-season properties (32 per cent).
- Most people in Alberta (69 per cent), and many in
Manitoba/Saskatchewan (40 per cent), Ontario (39 per cent) and
Quebec (45 per cent) plan to use 11 to 20 per cent of the purchase
price as a down payment for their recreational property, while 47 per
cent of people in British Columbia and 54 per cent of people in the
Atlantic Provinces plan to use more than 20 per cent."A growing number of Canadians are factoring a vacation property into
their retirement planning and are looking for flexible mortgage solutions that
will enable them to buy the property they want and retire with financial peace
of mind," says Stan Falkowski, President, Mortgage Intelligence Inc. "These
are hard-working Canadians who want to enjoy their retirement without making
mortgage payments for years on end."
In the past, financing for a recreational property has been more
challenging than for a principal residence, as traditional lending
institutions have found second homes to be a less than desirable investment.
But as the recreational property market continues to grow across the country,
fuelled by affluent Baby Boomers preparing for their retirement years,
consumers are finding they have other options that provide the flexibility and
payment options that will help them pay down their mortgage faster. With a
recreational property mortgage like irelax, consumers can purchase a vacation
property with as little as 15 per cent down and take advantage of up to 20 per
cent prepayment and up to a 20 per cent increase in payments annually.
"Vacation properties are more than just a financial investment for most
Canadians. They quite often become the spot where families come together,"
adds Falkowski. "While recreational property mortgages are still relatively
new to the market, a product like this provides an easy and affordable way to
start a whole new string of family traditions."
The poll was conducted by Angus Reid Strategies between May 9 and May 10,
2007 among a representative sample of 1,046 adult Canadians. The results are
accurate to within plus or minus three percentage points, 19 times out of 20.
About Mortgage Intelligence Inc.
Mortgage Intelligence Inc. is among the largest and fastest growing
mortgage brokers in Canada, with more than 1,000 independent consultants and
associates in offices across Canada. Mortgage Intelligence consultants help
clients make better mortgage decisions for their home, revenue or vacation
properties, renewals, home renovations, debt consolidation needs, and
specialized mortgage requirements. Mortgage Intelligence has become a leader
in introducing innovative mortgage products that cater to niche segments such
as the self-employed. The company had funded volumes in excess of $8 billion
in fiscal year 2005. Mortgage Intelligence is a GMAC company. For more
information, visit: www.mortgageintelligence.ca.
About GMAC Residential Funding of Canada Limited
Founded in 2002, GMAC Residential Funding of Canada (RFC) has had
mortgage originations in excess of $3.5 billion, with $2.9 billion currently
under administration. The company offers a wide variety of conventional,
sub-prime and other mortgages. The company has issued over $1 billion of
securities to the Canadian market since its arrival in 2002. GMAC RFC is an
independent subsidiary of Residential Capital Corporation
(www.rescapholdings.com). For more information, visit: www.gmacresidential.ca.
For further information: Charlie Robson, NATIONAL Public Relations,
(416) 848-1456, crobson@national.ca; Dawn Erceg, Director of Marketing, GMAC
RFC and Mortgage Intelligence Inc., (416) 234-3170
