Canadian Mortgage Consumers Manage their Debt Responsibly



    OTTAWA, March 19 /CNW Telbec/ - Canada Mortgage and Housing Corporation's
(CMHC) 2007 Mortgage Consumer Survey shows that 78 per cent of Canadians who
recently purchased a new home intend to pay off their mortgage as quickly as
possible, and many have already taken steps toward that goal.
    "This study confirms that Canadians remain fundamentally cautious when it
comes to their mortgage debt," said Pierre Serré, Vice-President, Insurance
Products and Development, CMHC. "The fact that new homeowners are working to
pay down principal early and are accelerating payments is a good indication
that this responsible behaviour will continue throughout the life of their
mortgage."
    The 2007 survey focused primarily on recent purchasers and also for the
first time included questions on homeowner behaviour regarding mortgage debt
re-payment since arranging their mortgage. More than half of recent purchasers
agreed that, whenever possible, they would use extra money to pay down the
principal on their mortgage. CMHC's survey revealed recent purchasers are
acting on these intentions, with one-third at some point having made a lump
sum payment to their mortgage. Also, well over half reported making weekly or
biweekly payments, and the majority of these (84 per cent) are being made on
an accelerated basis, which has the effect of shortening the original
amortization period.
    CMHC's survey also indicates that Canadians continue to be well served by
the mortgage industry, with 85 per cent of respondents expressing satisfaction
with the mortgage process. Eighty-four per cent felt they had access to
suitable housing options, 88 per cent felt confident they could manage their
debt, and 89 per cent of recent purchasers felt that the mortgage choice they
made was the best option for them.
    Relationships with financial institutions remain very important to
mortgage consumers. 2007 has seen a slight increase in mortgage consumer
loyalty with, on average, 74 per cent 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, but 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 per cent from last year's level of 27 per
cent.
    CMHC's Mortgage Consumer Survey is conducted each fall to examine
consumer behaviour, attitudes and expectations when acquiring, renewing or
refinancing a mortgage. The survey is based on a national probability sample
of more than 1,400 recent active mortgage consumers comprised of first-time
buyers, repeat buyers, mortgage renewers and refinance consumers. The results
for the entire sample are accurate within 2.6 percentage points 19 times out
of 20.
    As Canada's leading mortgage insurer, CMHC shares a wealth of knowledge
and housing expertise for the benefit of Canadians. CMHC's mortgage insurance
has opened doors for millions of Canadians, giving them the assurance and
piece of mind that comes with homeownership.

    As Canada's national housing agency, CMHC draws on over 60 years of
experience to help Canadians access a variety of quality, environmentally
sustainable, and affordable homes - homes that will continue to create vibrant
and healthy communities and cities across the country.
    For more information, visit www.cmhc.ca or call 1-800-668-2642.




For further information:

For further information: Julie Girard, CMHC Media Relations,
(613)748-4684, jagirard@cmhc-schl.gc.ca; This release is also available on the
CMHC Web site: http://www.cmhc-schl.gc.ca


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890