According to the CMHC in a recent survey, Canadians reported that they were eager to pay off their mortgages as quickly as possible.
Not exactly breaking news – who in their right mind would want to be indebted to a bank longer than absolutely necessary?
Why am I blogging about it then? Despite the duh-factor headline, when one looks further into the survey, some of the numbers are actually quite surprising.
- 78% of homeowners expressed an interest in paying off their mortgage as fast as possible.
- 33% had made a lump-sum payment for this purpose
- A whopping 84% of homeowners who make weekly or biweekly payments on the mortgage are doing so at an increased rate in order to pay off the mortgage quicker. [as little as 10% extra per month can shave years off your mortgage and save you tens of thousands in interest].
- Half of those surveyed said they would use extra money to pay down the mortgage whenever possible
Other items in the survey included confidence levels about housing debt: 85% of respondents felt comfortable that they could handle their mortgage debt load.
Also, Canadians were overall happy with the mortgage process and the service they received; 85% reported being satisfied. The number of people using the services of a mortgage broker rose from 27% in last year’s survey to 33% this year. I am surprised it is this low, actually. Mortgage brokers provide better rates with better service in most cases, ‘shopping’ your file to as many as 50 different lenders who compete for your loan.
The full CMHC survey can be found here.