Canada Mortgage and Housing Corporation (CMHC) recently released its Mortgage Consumer Survey* that revealed, among other findings, that the services of mortgage brokers are becoming more in demand.
The CMHC survey tallied mortgage broker market share by segment and found:
- First-time and repeat homebuyers are twice as likely to use the services of a broker than homeowners who are renewing or refinancing (49 percent versus 24 percent).
- Mortgage broker market share is trending upwards for most market segments, especially among repeat buyers, where broker market share increased from 32 percent in 2012 to 42 percent in 2015.
- Mortgage brokers are especially popular among first-time buyers, with broker market share reaching 55 percent in 2015 compared to 48 percent in 2014.
- Broker share among renewers has remained stable at around 21 percent.
Looking further into the habits of mortgage renewers, the survey found:
- 60 percent renewed before the scheduled date, mostly to avoid a perceived increase in rates.
- 49 percent are striving to pay off their mortgage sooner by having their mortgage payment set higher than the minimum required payment, while 32 percent have either made a lump-sum payment or increased their regular payment – or both – since last renewing their mortgage.