Hi everyone, sorry about a little time off from the videos. The F market is upon us and I have been busy helping my clients with some amazing low rate financing. I can still do 2.99% 5 year mortgages with full pre-payments.
This week I report on CMHC’s 2012 Mortgage Survey, it was helped in large part by Jackson Middleton, a mortgage agent from Regina who attending a conference today where CMHC went through the results of the survey.
There are 3 topics that I covered from the get go:
– On October 3rd, Jawad Rathore and Vince Petrozza from Fortress Real Capital will be in Ottawa to lead a town hall discussion at the Coliseum Ottawa at 6:30. During this discussion they will go over project development updates, you will hear from some of their co-developers, learn about the development process, and get the newest market reports with trends and forecasts. Their two big projects in Ottawa are SoBa and Gotham.
–Bennett Property Shop Realty will soon be launching their sales centers for their two new projects in the coming weeks. They are “The Slater” on Slater Street and “Qualicum Woods Crossing” near Pinecrest.
-There has been ramped up support within several community associations regarding the ways that Ottawa city council have been going about their ways in the community development process. There will be letters going to the city, letting the city know that their practices are being monitored and are not viewed favourably.
Mainly, stop hiring private consultants to process development applications within the Planning Approval branch at the City, stop making specific commitments to developers and property owners during secret “pre-consultation” meetings, ban political contributions from the development industry to municipal campaigns, and to comply with the Provincial Planning Act by updating the entire comprehensive zoning by law.
[youtube]http://www.youtube.com/watch?v=dud3pSrO9Hk[/youtube]
Results from the 2012 CMHC Mortgage Consumer Survey
Some Housing Statistics from the Results of the 2012 Mortgage Consumer Study
-71% of mortgage consumers report going to the internet to research mortgages
-Year over Year increase is 9% in online usage- a total of only 31% of consumers ONLY used the internet to secure mortgage financing
-86% of people searched around interest rates when doing online mortgage research
-64% of mortgage consumers searched mortgage calculators, while 93% of those people were satisfied with the findings of their search
-When consumers went online, 71% used an online calculator, 58% compared mortgage products side by side, 45% researched new product.
-12% of first time home buyers went to Facebook to secure information about the home buying process, only 3% used Youtube.
-2% of first time home buyers used Twitter to secure information about the home buying process, while 7% went to blogs.
-30% of inquires on social media from first time home buyers were to specifically solicit opinions on finding professional referrals.
– Did you at any time use a mobile device to secure mortgage information- 14% all segments, 38% of those 18-24 years old.
– 62% of respondents were satisfied with securing mortgage information on their mobile device, the ones who werent used blackberries obviously.
– 56% of people said that the lender was most influential in their mortgage decision making process- 45% said the broker
– The person who had the highest degree of influence in the mortgage process was the Financial Planner at 42%
– A financial planner is more likely to refer a specific lending institution than a mortgage broker, however a real estate agent is more likely to refer a mortgage broker then a single lender.
– 61% of consumers went through a scenario of what happens when mortgage rates increase after the initial term expires
– It took on average 5 weeks for consumers to complete all their research on the mortgage process, 8 weeks for first time homebuyers.
– 66% of people contact more then one lender or broker to explore their options
– One average, buyers contacted 2.7 lenders and/or 1.9 brokers
– 49% of consumers reported to having put together a list of questions before starting the mortgage process
– 42% of mortgage consumers did NOT have a conversation about the pros and cons of the mortgage they are securing
-More then 80% of consumers feel confident in the mortgage choices they made
-More then 50% of the CMHC portfolio is less than 80% LTV
-Most mortgage consumers remain loyal to their current lender- 90% stay
-Since their initial transaction, only 46% of people have been contacted by their broker or lender (This is terrible!!)
-42% of brokers follow up via phone, 29% email, 12% print, 10% in person, 6% social media
-The majority of post-transaction communication is just to say “Thank You”, isn’t that nice..
– Only 2% of people were followed up with to see if they were satisfied with the consumer experience
– Only 18% of first time home buyers are using their RRSPs for their down payment- whereas 19% of people received a gift from family
-Only 23% of people made a lump sum payment to their mortgage to reduce the overall principal balance outstanding
-40% of mortgage consumers reported completing an online financial assessment
– 80% of people indicate that they have a household budget
-Average age of the first time home buyer in Canada is 34 years old.
