Despite a difficult economic year, CAAMP's latest survey on the residential mortgage market in Canada points to reasons for being optimistic, among them a forecast that total outstanding mortgage credit will surpass the $1 trillion mark in 2010.
On another positive note, CAAMP's fall survey report found brokers' share of the mortgage market has remained stable at 23 per cent (higher among first-time buyers) and 77 per cent of Canadians remain satisfied or completely satisfied with their mortgage. About one quarter of homeowners with mortgages had some mortgage activity in the last 12 months, the report said, and of those who renewed, 73 per cent received lower rates than their original term.
"Mortgage consumers have been busy, and have effectively capitalized on low interest rates to shop and renegotiate," said Jim Murphy, CAAMP's president and CEO. "CAAMP's survey found that, on average, negotiated rates were discounted by 1.23 percentage points lower than typical advertised rates for 5-year mortgages, and we see this discounting trend continuing."
When it came to lenders, survey respondents named the three most important factors for choosing a lender as interest rate, flexibility of payment and credibility. A large majority (88 per cent) stayed with the same lender upon renewal and 56 per cent chose a five-year term mortgage product. However, the report also noted that many people who took out a mortgage in the past year chose a shorter term, with 20 per cent at one year or less.