Every year, the Canadian Mortgage and Housing Corporation (CMHC) conducts a Mortgage Consumer Survey to identify trends in the experience of selecting a mortgage in Canada. Among the results of this year’s survey was the fact that a growing number of Canadians are electing to use the services of a mortgage broker rather than working directly with lenders.
Canadian Mortgage Broker Selection By the Numbers
According to the 2015 Mortgage Consumer Survey, 42% of mortgage loans obtained by repeat buyers—which includes homeowners who are refinancing their existing mortgages and those making a home purchase who have already gone through the homebuying process in Canada before—originated with a mortgage broker rather than directly with a mortgage lender.
In 2012, only 32% of repeat buyers in Canada used mortgage brokers to originate their loans. That’s a 31% increase in the number of repeat buyers turning to mortgage brokers to help them find the most advantageous loans.
Among first-time Canadian homebuyers, 55% of successfully completed mortgages originated with brokers in 2015, compared with 48% a year ago.
Explaining the Popularity of Canadian Mortgage Brokers
Hot housing markets in certain areas combined with low rates and economic uncertainty have made the Canadian home buying process a confusing one for many. The various mortgage options that exist, in addition to the volatility of the housing market, are likely contributing to Canadians’ understanding of the value an experienced broker.