(1888PressRelease)
August 19, 2008 - RateSupermarket.ca recently released their latest survey which showed that mortgage shoppers continue to remain loyal to their own banks when securing funding for their homes, versus other available options such as Canadian mortgage brokers, specialty lenders and credit unions.
The website asked visitors: Where did you get your last mortgage from? The results of 145 people were as follows:
Your own bank: 43%
Mortgage broker: 26%
Credit union or trust company: 15%
Other: 9%
Another bank: 7%
Almost 50% half of respondents said their own bank, while 26% used a mortgage broker. Only 7% went to a competing bank, which further confirms Canadian’s loyalty to their own financial institution.
The survey’s results gives a quick insight into the market share of the various channels in sourcing mortgages. CAAMP, the Canadian Association of Accredited Mortgage Professionals, estimates their share to 21%. The Canadian mortgage broker market is less developed than other countries, including the US, where the broker market share has risen to 60% in the past 10 years, according to a consulting firm. This year, US brokers' market share is likely to slide to around 40 percent as banks move toward making more loans directly.
The results also confirm that the ‘Big Six’ Canadian banks are doing a fantastic job to gain this level of trust, however, does this mean their customers are getting the best deal on their mortgage?
Discounted rates offered by specialty lenders and mortgage brokers can be up to 1.5% - 2.0% lower than the big bank’s posted rates, which can result in thousands of dollars of savings over the life of a mortgage.
RateSupermarket.ca founder, Kelvin Mangaroo, comments,”Canadians have traditionally used their existing banks for most of their financial transactions due to good relationships with their local manager and the simplicity of dealing with one organization. However, with the average Canadian receiving less than 2 quotes on their mortgage, many first-time buyers and current home owners are spending more than they need to.”
“RateSupermarket.ca offers a single place to easily compare mortgage rates, helping Canadians to make informed decisions and save money on their mortgages.”
* CAAMP survey Feb ’07: Canadians received 1.94 mortgage quotes on average
1. moneycentral.msn.com article.
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