The study, conducted by Ipsos and commissioned by LowestRates.ca, discovered the average Canadian spends a mere 5.75 hours deciding on a mortgage. This, despite the fact that 67% believe getting a mortgage is a very important decision.
The reason for this, according to the man behind the study, is mostly habit. That and an ingrained trust in the big banks.
“The first reason is just that people habitually trust the big banks. It’s what their grandparents did, what their parents did and now it’s what they do,” Justin Thouin, co-founder and CEO of LowestRates, told MortgageBrokerNews.ca. “They just go to the bank and they trust that the information they’re getting from the bank is their best option. And they don’t think or even recognize that there is anything else out there.”
The study – which included 2,500 Canadians and claims to be accurate to within +/- 3.5% points 19 times out of 20 had all Canadian adults been polled – found homebuyers spend more time (7.75 hours) on finding a vacation than they do a mortgage.
It also found 67% of Canadians got their mortgage from a bank, compared to 22% who used a broker.
“I think it’s really important (to use a broker). Mortgage brokerages can not only compare the market for consumers and provide access to three of the five big banks, but generally can offer 20 other lenders,” Thouin said. “Mortgage brokers can present not only the best rate, but also the best overall mortgage for the consumer. It’s not just about the rate; different people have different life situations and unique needs.”
A recent study crunched the numbers on Canadian home buyer habits and the prevailing trend is that many aren’t dedicating enough time to that search.