The current uncertain times have led to some definite changes in attitudes among homebuyers and mortgage consumers. And two recent reports suggest rising interest rates and affordability are at the centre of those changes.
A poll by the Angus Reid Institute found that Canadian homeowners hold widespread concerns about what higher interest rates could mean for their next mortgage renewal. Overall, 77% of respondents said they are worried about added costs.
The survey suggests those concerns exist for both fixed and variable rate borrowers and they extend across the spectrum from ‘new’ mortgages to ‘almost mortgage free’. For those with 25 or more years left on their mortgage that number jumps to 91%. For those with five years or less, a substantial, 44% expressed concerns.
Given those numbers, it is probably no surprise that attitudes toward mortgage brokers and lenders have declined.
The annual Consumer Survey by Canada Mortgage and Housing Corporation indicates satisfaction with brokers dipped to 71% compared to 86% in the 2022 survey. Lenders saw satisfaction drop to 75% from 88%.
The CMHC survey suggests a lack of follow-up is a key reason for the decline in satisfaction, with just 49% of borrowers reporting being contacted by their broker after their mortgage transaction.
The survey indicates borrowers can have problems keeping track of economic developments. Nearly a quarter of the respondents said they only learned about rate hikes when they saw their mortgage payments increase. Just 23% reported being informed by their broker.