News Release

June 11, 2024 – Toronto, Ontario – Mortgage consumers are increasingly anxious about their financial situation, particularly the prospect of renewing their mortgage at higher interest rates, according to Mortgage Professionals Canada’s Semi-Annual State of the Housing Market Report.

The survey found that three quarters (76%) of those facing renewal in the next 12 months report being anxious about their renewal, an increase of 10 percentage points since last year. Meanwhile, seven out of 10 Canadians (70%) say they are anxious about their family’s financial situation over the coming months, an increase of 17 percentage points from last year.

Concerns about affordability aren’t just limited to current homeowners. MPC’s survey reveals non-owners are more pessimistic than ever about their prospect of being able to purchase a home.

More than half of non-owners (51%) now believe they will never purchase a home, up from 18% two years ago. Just 16% of non-owners are currently planning to purchase a principal residence in the next 24 months, a drop of seven points from a year ago.

“Canadians are grappling with an unprecedented housing affordability crisis, exacerbated by ongoing high interest rates and economic uncertainty,” said Lauren van den Berg, President and CEO of MPC. “Our findings highlight the urgent need for policies that address these challenges and support both current and aspiring homeowners. We remain committed to advocating for measures that will make homeownership more accessible and sustainable for Canadians.”

MPC’s semi-annual report based on data collected from over 2,000 Canadians. The survey is conducted, and tabulated by partner firm Bond Brand Loyalty.

Consumers are increasingly pessimistic – highlights

• 55% are well-positioned to handle an increase in mortgage rates (-5 pts from 2022)
• 33% regret taking the size of mortgage that they did (+7 pts from 2022). Of those renewing in the next year, 43% regret taking on the size of mortgage that they did.
• 23% say a small increase in rate will cause them trouble making payments
• 9% say they are currently having trouble making payments (vs. 6% in 2022)

   

  Canadians remain positive toward real estate

   

  Despite elevated anxiety caused by higher interest rates and an uncertain economic backdrop, Canadians continue to view real estate as a good long-term investment. Roughly eight in 10 respondents view real estate as a good long-term investment, up seven points from last year.

   

  Another 77% classify a mortgage as “good debt,” up from 68% last year, and more than half of Canadians (52%) are positive about Canada’s economy over the next 12 months (+8 pts).
  

   

  “Despite the current challenges, Canadians’ confidence in real estate as a sound long-term investment remains strong,” said Joe Jacobs, Chair of MPC’s board of directors. “This enduring belief underscores the importance of working with a mortgage professional. Our expert and objective advice helps cut through the noise so that we can help you find the solution that’s right for you, especially during this environment of economic uncertainty.”

  Broker market share continues to rise

   

  For those looking to purchase a home, more are relying on the services of a mortgage broker, the results reveal.

   

  More than a third of homebuyers (34%) reported using a mortgage broker to obtain their most recent mortgage, up four points from last year. That percentage is even higher among first-time buyers (46%), those who purchased in the past two years (45%) and those from Ontario (40%).

   

  When looking at future intentions, a full 62% of respondents said they are somewhat or very likely to work with a mortgage broker.

   

  The survey found that broker customers report being more satisfied with their experience compared to bank customers. Brokers earned top marks among consumers for the ease of doing business with them (38%), their reliability (37%), their knowledge of mortgage products and rates (37%), timeliness (37%) and safeguarding of personal information (36%).

   

  More highlights from MPC’s semi-annual consumer survey:

   

• Canadians’ propensity to negotiate their mortgage rate at renewal is on the decline.
  • Just 8% say they “significantly” negotiated their mortgage rate at renewal, down from 16% in 2021.
  • 44% say they accepted the initial rate their lender offered then, up from 37% two years ago.
• The survey revealed a knowledge gap among consumers about how mortgage brokers are paid, which is typically through a commission paid by the lender. Among those apprehensive about using a broker, 27% cited not wanting to pay for their services.
• Nearly a third of Canadians (29%) say they are concerned about mortgage fraud, including falsifying documents as part of their application and title fraud. Nearly half (45%) said they have a neutral opinion on the topic.
  • Canadians largely support income verification through the Canada Revenue Agency as a means to prevent mortgage fraud, with 73% in favour.

The full report can be read here.  

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Contact

Mortgage Professionals Canada

media@mpc.ca

About Mortgage Professionals Canada

We are Canada’s mortgage industry association with over 15,000 members and more than 1,000 member firms. We are a non-profit association representing mortgage brokers and agents, as well as banks, lenders, insurers, and service providers, making up the largest network across the country. Forty-five percent of first-time home buyers in Canada choose brokers for their mortgage.

We are proud to be the industry that provides Canadians with choice when making the most important financial decision of their lives and helps people achieve the dream of home ownership. You can find one of our licensed members at findmeabroker.ca.