Francine Tracey B.Admin, AMP
Lead Mortgage Planner
604-433-0132
Latest Mortgage Broker Statistics
CMHC says 27% of Canadians use mortgage brokers, according to their latest mortgage consumer survey.
This number differs, however, from a recent CIMBL survey--which pegs the number at 31%.
More amazing was the finding that only 43% of mortgage seekers sought alternate proposals. The fact that this was not closer to 100% means that tens of thousands of people overpaid for their mortgage in 2006. CMHC also found that 71% of people refinanced before their mortgage term was up.
The number of people using mortgage brokers to shop for mortgage renewals jumped from 8% to 13% this past year.
The National Post had a few words about CMHC's survey as well. They noted that 81% of people renewed their mortgage with their existing lender. This was largely due to "convenience".
Moreover, many people seem to fear an onerous re-application process. That is a misconception since the renewal application process is actually a breeze if you let a mortgage broker do the legwork.
One of the major inroads for mortgage brokers was with "refi's." According to the National post, 65% of people stayed with their current lender when refinancing. This fell sharply from 83% the prior year, as brokers steered more and more clients into lower cost alternatives.
One of the best reasons to use a mortgage broker these days is to find research all the "hidden costs" of your mortgage. Did you know that most branches of the 5 major banks do not give you an approval in writing? And then suddenly 20-30 pages of legal documentation shows up at the lawyers office for your signature, two days before your closing. Do you think this is fair to the average consumer? Mortgage Brokers are governed by the Ministry of Finance and have to follow strict disclosure guidelines and review all costs with their borrowers. One of the biggest hidden costs by banks is a mortgage penalty which can be charged to you if you break your mortgage in the middle of the term. As your mortgage broker, I am monitoring penalties and making sure that lenders are charging penalties under guidelines which are fair to the consumer.
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