However, Canadians also believe that more should be done when it comes to educating consumers on mortgages
Many Canadians pay more attention to their leisure plans than to their mortgages, according to the Financial Services Regulatory Authority of Ontario.
In its recent survey, the FSRA found that 38% of respondents spend more time researching their next vacations than their prospective mortgages.
“People should understand they are signing up for a long term commitment that is the largest purchase that most families will ever make,” said Huston Loke, executive vice president of market conduct at the FSRA. “We know just how important these decisions are for borrowers.”
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Amid the spectre of Bank of Canada rate hikes, which will have a ripple effect on the nation’s mortgage rates, Loke said that homeowners could benefit from more extensive research on what loan products they’re planning to take on.
“This is part of being a smart consumer: being well-informed and knowing the kind of professional they are dealing with,” Loke said. “We encourage consumers to understand the mortgage decisions they are making.”
Canadians understand this on a fundamental level, the FSRA survey suggested. Approximately 74% of respondents said that more should be done to educate consumers on mortgages and mortgage brokers. Around 67% of homeowners used bank specialists when they got their mortgages, while 29% used mortgage brokers, 3% used private lenders, and 2% used other sources.
