Mortgage brokers grabbed a bigger share of the overall pie this year, according to the CMHC’s annual consumer market report.
Some 27 per cent of mortgage consumers used a mortgage broker to arrange their mortgage, reads the survey, released late last week. That’s a 4 per cent point rise over last year’s 23 per cent.
“In the past year, brokers have made further inroads among those renewing a mortgage, with one in five relying on a broker,” reads the report. “Key reasons for using a broker continue to be getting the best rate or deal, and receiving excellent service.”
The online survey was conducted in February and March 2012, and relies on responses from 3,502 recent mortgage consumers – all of them “prime decision makers” undertaking a mortgage transaction within the previous 12 months.
Mortgage Brokers are fast becoming an even more vital link for borrowers who’s Banks just says “NO”
This is as a result of much tightening in mortgager borrowing guidelines introduced over the past three years. The government felt they needed to cool the Real Estate Market in Canada by making it tougher to get a mortgage, by reducing amortizations and to force Self Employed borrowers to show more taxable income in order to qualify for a mortgage. Investors felt the pinch when it became mandatory to offer up 20% as a down payment when buying a rental property
Expect that as time goes by that even more Canadians will turn to professional Mortgage Brokers to get not only great rates, but mortgage approvals that Banks are not able to offer.
