Quebec Homeowners Intend to Pay off Mortgage Quickly

Canada Mortgage and Housing Corporation’s (CMHC) 2007 Mortgage Consumer Survey shows that 76 per cent of Quebecers who recently purchased a home intend to pay off their mortgage as quickly as possible, and 65 per cent of purchasers agreed that they would use extra money to pay down principal whenever they are able - over the national average of 57 per cent.

“This study confirms that Quebecers, like most Canadians, remain fundamentally cautious when it comes to managing their mortgage debt,” said Pierre Serré, Vice-President, Insurance Product & Business Development, CMHC. “The fact that new homeowners in Quebec intend to pay off their mortgages as quickly as possible, and are taking steps to do so, is a good sign.”

The 2007 national survey focused primarily on recent purchasers and also for the first time included questions on homeowner behaviour regarding mortgage debt re-payment since arranging their mortgage.

More than half (55 per cent) of recent homebuyers in Quebec are making weekly or bi-weekly mortgage payments, and three quarters of these are on an accelerated basis which has the effect of shortening the time required to payoff the mortgage. About one-third are also planning to reduce their mortgage amortization period when their mortgage comes up for renewal.

CMHC’s survey indicates that 86 per cent of mortgage consumers in Quebec felt confident they could manage their debt, and 87 per cent of recent purchasers felt that the mortgage choice they made was the best option for them.

In addition, 26 per cent of Quebec mortgage consumers buying a home used the services of a mortgage broker to arrange their mortgage, compared to the national average of 33 per cent.

CMHC’s Mortgage Consumer Survey is conducted each fall to examine consumer behaviour, attitudes and expectations when acquiring, renewing or refinancing a mortgage. The survey is based on a national probability sample of more than 1,400 recent active mortgage consumers comprised of first-time buyers, repeat buyers, mortgage renewers and refinance consumers. The results for the entire sample are accurate within 2.6 percentage points 19 times out of 20.

As Canada’s leading mortgage insurer, CMHC shares a wealth of knowledge and housing expertise for the benefit of Canadians. CMHC’s mortgage insurance has opened doors for millions of Canadians, giving them the assurance and piece of mind that comes with homeownership.

As Canada’s national housing agency, CMHC draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes - homes that will continue to create vibrant and healthy communities and cities across the country.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

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