In its latest annual Mortgage Consumer Survey, the Canada Mortgage and Housing Corporation found that would-be borrowers vastly preferred their brokers to have a deep knowledge of the mortgage process.
The study, which polled 4,000 recent mortgage consumers in April this year, also found that a majority of Canadian home buyers found their brokers via recommendations, thus emphasizing the role that an established reputation plays in the industry.
In particular, first-time buyers leaned towards brokers that have more information on mortgage/purchase fees and closing costs. Repeat buyers preferred brokers to have information on closing costs and types of mortgages.
These facts dovetailed with another important finding: The CMHC analysis also found that only a little over half (52%) of home buyers knew of the latest mortgage qualification rules.
Fortunately, attesting to the overall quality of the segment’s practitioners, nearly 3/4 of the survey respondents indicated satisfaction with their brokers.
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Consumers’ main reasons for working with brokers were getting the best rates/deals, getting advice/recommendations, and enjoying the convenience of working with a professional that can handle pretty much everything that they need.
And while half of the home buyers surveyed said that they are comfortable with using more advanced technologies for their next transactions, a clear majority still stated that face-to-face meetings with mortgage professionals are more important.
Of those who had undertaken a transaction via a broker over the past year, 68% renewed their mortgages, while 15% refinanced. Another 16% purchased homes with mortgage financing, 9% being first-time buyers and 7% repeat buyers.