Canadian Association of Accredited Mortgage Professionals survey shows
longer amortization and flexible terms keep mortgage industry buoyant
TORONTO, Nov. 7 /CNW/ - The vast majority of Canadians (81 per cent) are
happy with the terms of their mortgages thanks in large measure to "good
interest rates" and longer amortization options, according to a report
released today by the Canadian Association of Accredited Mortgage
Professionals (CAAMP). Significantly, thirty seven per cent of Canadians who
have taken out a mortgage in the last year have chosen amortization periods of
more than 25 years. The information was gathered by Maritz from an online
survey of 2,000 Canadians in late September and analyzed in conjunction with
CAAMP economist, Will Dunning.
While mortgage rates continue to be the most common factor consumers use
to rate satisfaction with their mortgages, consumers are clearly pleased with
the many new alternatives they have. Fifty-eight per cent cited more choice
for payment options and mortgage terms as reasons for being satisfied with
their current mortgage.
"Canadians, particularly first time homeowners, are looking for lending
products that can help them enter the market as prices continue to rise," said
Jim Murphy, AMP, President and CEO of CAAMP. "Alternative lending products,
such as longer amortizations, with the option to renegotiate terms, are
keeping the housing market accessible to a wider range of investors."
Most Canadians chose their mortgage lender because of the rate offered
and most said they sought two or less quotes, suggesting that at least on
rates, there is not much difference among institutions. The number of
Canadians who have consulted with a mortgage broker remained unchanged from
last year at 28 per cent; however for those new mortgages taken out during the
last year, the number consulting mortgage brokers rises to 43 per cent. The
majority of Canadian mortgage holders continued to consult with one of the
major banks when taking out a mortgage.
The survey asked Canadians about the turmoil in the United State's
sub-prime mortgage and housing markets. Most Canadians said they are aware of
the events, and that they are concerned about them to varying degrees.
However, they see little impact on themselves - even among those who are
concerned to some degree, 58 per cent said that the changes in the U.S. have
had no effect on their recent decisions.
"Canadian homebuyers are a sophisticated and savvy group," said Andrew
Moor, AMP, CAAMP Chairman. "They have a risk management attitude. Canadians
understand that our mortgage market remains strong and stable, even as they
continue to keep a close eye on interest rates."
Growth of residential mortgage credit continues to accelerate - during
the past two years, it expanded by an average of $77 billion per year, or 11.4
per cent per year. The volume of residential mortgage credit outstanding is
forecast to grow by 11.7 per cent in 2007, 9.3 per cent in 2008 and 8.4 per
cent in 2009. Total mortgage credit is projected to reach $963 billion by the
end of 2009 and will surpass $1 trillion during 2010.
The mortgage market's expansion in recent years is related to strong
housing market activity. The volume of sales more than doubled (rising by 144
per cent) in the six years from 2000 to 2006, for a growth rate of 16 per cent
per year - resulting in a rapidly rising requirement for mortgage financing.
Over the same period, outstanding residential mortgage credit expanded at a
rate of 8.9 per cent per year.
Canadian attitudes towards buying a home varied according to their
locations. Those most negative pointed to high house prices. Those most
positive cited low interest rates. When asked if "now is a good or bad time to
buy a home in your community," British Columbians were slightly less positive
about buying than a year ago while Saskatchewan and Alberta were the only two
provinces where a majority gave a negative response (60 and 59 per cent
respectively) reflecting the heated housing markets in those two provinces. In
the East, Quebec and Ontario, respondents were more positive about buying at
Established in 1994, the Canadian Association of Accredited Mortgage
Professionals (CAAMP), formerly the Canadian Institute of Mortgage Brokers and
Lenders, is Canada's national mortgage industry association. CAAMP has assumed
a leadership role in the industry it serves and has set the standard for best
practices for Canada's mortgage practitioners. In 2004, CAAMP created the
Accredited Mortgage Professional (AMP) designation as part of an ongoing
commitment to increasing the level of professionalism in Canada's mortgage
As a membership-based organization, CAAMP strives to develop its network
of professionals and to represent the interests of these individuals to
government, media and consumers. CAAMP has attracted over 10,000 members and
1,100 companies from across Canada - representing over 90% of Canada's
mortgage activity. CAAMP members make up the largest and most respected
network of mortgage professionals in the country. CAAMP's membership base
consists of mortgage lenders, brokers, insurers and other industry
CAAMP's other primary role is that of consumer advocate. On an ongoing
basis CAAMP aims to educate and inform the public about the mortgage industry.
Through its extensive membership database, CAAMP provides consumers with
access to a cross-country network of the industry's most respected and ethical
In September/October 2007, Maritz Research conducted a 21-question
telephone survey with 2,000 Canadian consumers. A sample of 2,000 Canadians
ensures an accuracy of + 2.2%, 19 times out of 20.
A copy of the survey is available at www.caamp.org
For further information:
For further information: or to request an interview, please contact:
Myra Reisler, Media Profile, (416) 504-8464, firstname.lastname@example.org; Jim
Murphy, CAAMP, 1-888-442-4625, (416) 385-2333, ext. 31, email@example.com