BC Mortgage Customers Plan to Pay Off Mortgage ASAP

By 250 News

Canada Mortgage and Housing Corporation’s  2007 Mortgage Consumer Survey shows that the overwhelming majority BC residents who recently purchased a home are confident their mortgage choice was the best for them, and 79 per cent intend to pay off their mortgage as quickly as possible — on par with the national average of 78 per cent.

“This study confirms that British Columbians remain fundamentally cautious when it comes to managing their mortgage debt,” said Pierre Serré, Vice-President, Insurance Product & Business Development, CMHC. “Homeowners in BC are confident about their mortgage decisions and intend to pay off their mortgages as quickly as they are able.”

The 2007 national survey focused primarily on recent purchasers and also for the first time included questions on homeowner behaviour regarding mortgage debt re-payment since arranging their mortgage.

Recent purchasers in BC are taking steps to reduce their mortgage debt. Nearly half are making weekly or bi-weekly mortgage payments, and the vast majority of these are on an accelerated basis which has the effect of shortening the time required to payoff the mortgage. In addition, 39 per cent are planning on reducing their mortgage amortization period when their mortgage comes up for renewal.

CMHC’s survey indicated that 93 per cent of British Columbians who recently purchased a home felt that the mortgage choice they made was the best option for them, compared to the national average of 89 per cent. As well, more than half agreed that, whenever possible, they would use extra money to pay down the principal on their mortgage. Among BC residents who either purchased a home, renewed, or refinanced a mortgage, 86 per cent are confident in their ability to manage their debt.

Mortgage consumers in BC are also more likely to use the services of a mortgage broker when purchasing a home. In 2007, 43 per cent of purchasers in BC used a mortgage broker to arrange their mortgage, well over the national average of 33 per cent.

The survey also reveals that 89 per cent of mortgage consumers in BC are satisfied with the services they received from either their mortgage lender or broker, compared to 81 per cent in 2006. 

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