|Canadian Mortgage Consumers Manage their Debt Responsibly and Plan to Pay Off Mortgage Quickly|
Ottawa, March 20, 2008, According a recent survey conducted by the Canada Mortgage and Housing Corporation (CMHC) 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.
The 2007 national survey focused primarily on recent purchasers and also for the first time included questions on homeowners' behaviour regarding mortgage debt re-payment since arranging their mortgage.
88 per cent of Canadians feel confident in their ability to manage mortgage debt. This confidence in debt management appears tied to repayment goals; more than 75 per cent of survey respondents who bought a home within the last year say their goal is to pay off their mortgage as quickly as possible. In fact, many are taking steps towards that goal: one-third of purchasers have, at some point, made a lump sum mortgage payment, and a similar proportion had shortened their original mortgage amortization period. Well over half reported making weekly or biweekly payments, and the majority of these payments (84 per cent) are being made on an accelerated basis, shortening the original amortization period and reducing overall interest costs.
“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 principle early and are accelerating payments is a good indication that this responsible behaviour will continue throughout the life of their mortgage.”
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.
CMHC survey covered 1,404 active mortgage consumers - all prime decision makers - and the result is a unique perspective on attitudes and behaviours. Results for entire sample is believed to be accurate to + or - 2.6%, 19 times out of 20.