Homeowners Are Anxious About Their Renewal

Date Posted: July 31, 2024

According to the latest consumer survey from Mortgage Professionals Canada (MPC), financial anxiety is rising among both Canadian mortgage holders and non-owners. 

Among mortgage holders who need to renew within the next 12 months, 76% feel anxious about the process, a 10% increase from last year. Furthermore, 70% of Canadians worry about their family's financial future, up 7% from the previous year. 

The survey also found that more than half (51%) of non-owners believe they will never be able to buy a home, a sharp increase from 18% two years ago. Only 16% of non-owners plan to buy a home within the next two years, down 7% from last year. 

Despite these concerns, there is some optimism. Over half (52%) of those renewing mortgages in the next 12 months are hopeful about the economy improving in the coming year, slightly up from the previous year. Additionally, about 80% of respondents still view real estate as a good long-term investment, and 77% consider a mortgage as "good debt," up from 68% last year. Most homeowners (over 90%) are happy with their decision to buy a home. 

The survey also shows a growing number of Canadians are using mortgage brokers. Currently, 34% of homebuyers used a mortgage broker for their latest mortgage, an increase of 4% from last year. This share is even higher among first-time buyers and recent purchasers. Additionally, 62% of respondents are likely to use a mortgage broker in the future. 

The survey results, based on responses from nearly 2,000 Canadians, cover various aspects of the mortgage market, including types of mortgages, terms, down payments, renewals, refinancing, and the use of mortgage professionals. 

Key findings include: 

• 70% of mortgage holders had fixed-rate mortgages in 2023. 

• The average down payment last year was $70,578. 

• 70% of mortgage holders expect to renew their mortgage within the next three years. 

• 44% of mortgage holders accepted the initial rate offered by their lender at renewal. 

• 69% of Canadians have not considered refinancing their mortgage. 

• 16% of homeowners took equity out of their home through refinancing, averaging $92,838. 

• 40% of mortgage holders took action to shorten their amortization periods. 

• 34% of mortgage borrowers used a mortgage broker, with higher percentages among first-time buyers and recent purchasers. 

The survey also indicates that consumers who use mortgage brokers report higher satisfaction compared to those who deal with banks. Working with a mortgage broker is the single best decision you could make for your home purchase. Gaining access to a broker’s years of experience will bring more negotiating power, access to more lenders and options, and a bigger variety of options.