CMHC’s 2009 Mortgage Consumer Survey results were released last week, and indicate that nearly 90% of recent home purchasers across the country believe that home ownership is a good long-term investment. Almost 70% think that now is a good time to purchase a home in their community.
The survey results also indicate that recent purchasers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86% are of the view that the level of total housing and other monthly payments should generally not exceed 40% of gross household income, which is in line with generally accepted mortgage lending practices.
“Given the current economy, this study indicates that Canadians continue to be optimistic about homeownership and are astute mortgage consumers,” said François Blouin, Director, Insurance Products and Strategic Direction, CMHC. “Our results reaffirm what we have seen in previous surveys – when it comes to their mortgages, Canadians are informed and manage their debt prudently.”
The survey shows that recent purchasers are prudent mortgage managers. According to the survey, 75% of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20% of recent purchasers report having made a lump sum payment to their mortgage.