Many still see real estate as a good long-term investment, survey shows
Canadians are increasingly anxious about buying a home due to a combination of the unpredictable housing market, high home prices, and rising interest rates, a new report from Mortgage Professionals Canada (MPC) has found.
The 2022 Year-End Consumer Survey and Outlook report highlighted that nearly 60% of Canadians are worried about inflation and their family's finances, which is a 20% increase from six months earlier. Meanwhile, 47% said a rate increase of up to 20% would cause them to experience mortgage payment difficulties, with 14% of recent first-time buyers already reporting payment difficulties.
Additionally, 33% of non-homeowners think they will never be able to buy a family home, up 8 points in just six months and 15 points year-over-year.
Despite these concerns, close to 80% of respondents still see real estate as a good long-term investment, with more and more Canadians turning to mortgage brokers to help them find competitive rates and products.
According to the survey, almost half (45%) of first-time homebuyers would work with a broker, and nine out of 10 customers reported being very satisfied with their experience. Likewise, four out of five customers said they would recommend their broker to friends and family.
“Home buyers tell us the top reasons they seek the services of a mortgage broker is for competitive rates and to get multiple quotes – giving them choice,” said MPC CEO Lauren van den Berg, who noted the crucial role that mortgage brokers play in the Canadian housing market.
Find out to learn more why is it better to use a mortgage broker rather than a bank in this article.
The report also revealed that many Canadians are still unfamiliar with what a mortgage broker does and how they work, a common misconception being that borrowers need to pay out of pocket for their services.
Other highlights from the report include insights on mortgage professionals and the service they provide, with data showing that broker customers receive more than 50% as many quotes as bank customers.
The 2022 Year-End Consumer Survey and Outlook report was commissioned by MPC from Oxford Economics, utilising data collected from an online survey of over 2,000 Canadians across the country. Issued in December 2022, the survey also showed that 69% of mortgage holders had fixed-rate mortgages and 25% had variable or adjustable rates.
What are your thoughts on the survey results? Let us know in the comments below.
