CMHC does an annual survey of Mortgage Consumers to learn more about who they are working with to obtain/renew their mortgages.  It is of interest to a Mortgage Broker like myself as it gives us an indication of where our overall market is and which way we are trending.

The trend appears to be going towards Mortgage Brokers, which probably means we are doing a better job of getting the message out to the public that we are here and this shows up most dramatically with First Time Buyers.  While our numbers have improved with renewers, far too many still just take the offer their current lender gives them.  For the sake of some paperwork a little shopping by a Mortgage Broker has shown to save people on their renewing rates!

Here is a highlight from the report:

Mortgage Brokers and Lenders Both Continue to do Well in Terms of Share and Loyalty

In the 2012 survey, 27% of mortgage consumers used a mortgage broker to arrange their mortgage (23% in 2011). In the past year, brokers have made further inroads among mortgage renewers, with one in five relying on a broker. Broker share of mortgage originations has remained stable among first-time buyers at 48%, and repeat buyers at 32%. Among those refinancing their mortgage, 27% used a broker. Key reasons for using a broker continue to be getting the best rate or deal, and receiving excellent service.

Mortgage consumers remain loyal to their existing lender to varying degrees. Nearly nine in ten renewers continue to remain loyal to their existing lender, a finding that has been consistent over the past several years. Lender loyalty continues to be weakest among first-time buyers, where 59% reported getting their mortgage with the financial institution they were dealing with the most. However, there appears to be an increase in lender loyalty among first-time buyers, which has increased from only 47% in 2009. As with brokers, key reasons for using a lender continue to be getting the best rate or deal, and receiving excellent service.

For both lenders and brokers, mortgage negotiations are still dominated by face-to-face meetings (68% for those using a lender and 51% for those using a broker), followed a distant second by most negotiations being done over the phone (18% for those using lender and 21% for those using a broker). The majority of mortgage consumers agreed that they were satisfied with their experience using their lender or broker (83% for lenders and 77% for brokers).

The CMHC page this came from: CMHC 

The full report here

My sense is that the more clients we Mortgage Brokers can meet with, the less satisfied they would be with dealing with their lenders.

Michael Anthony Lloyd