Mortgage Shopping Revealed!

Here are some recent stats on how consumers shop for mortgages:

Mortgage Shopping
1.96: Average number of mortgage quotes obtained by consumers.
42%: Percentage of mortgagorswho got just one quote.
I guess the idea of shopping around and saving money apparently doesn’t appeal to some folks.
6%: Number of borrowers who got no quotes.
This includes people who simply signed their renewal letter. What a painful thought.
10%: Share of mortgagors who got over three rate quotes.

Pre-payments
12%: Percentage of mortgagors who made a lump-sum pre-payment in the past year.
So many people want 20% pre-payment privileges and so few people use them.
16%: Percentage of mortgagors who increased their regular payments in the past year.
7%: Percentage of mortgagors who did both.

Rate Selection
66%: Chose fixed rates in the last 12 months.
29%: Chose variable/adjustable rate mortgages.
4%: Chose hybrid mortgages (part fixed / part variable).

Term Selection
66%: Took 5-year terms.
8%: Took terms over five years.
26%: Chose terms less than five years.

Professionals Consulted When Mortgage Shopping
70% spoke to a bank rep.
40% spoke to a mortgage broker.
Up five percentage points from last year.
22% spoke to a credit union.

Where People Went For A New Mortgage
40% went to a mortgage broker
39% went to a bank
21% went elsewhere


peter_mckinnon@centum.ca
http://www.peterlmckinnon.com/