An ING survey suggests 59 per cent of Canadians find negotiating for the best rate the most stressful part of obtaining a mortgage – ironically, results that provide support for the mortgage brokers ING has now left behind.
“I’d say per cent of people would probably tell you that interest rates are the most important part of the process before they begin,” says Verico
Premiere Mortgage agent Jason Friesen, reacting to the poll. “That drops to about 50 per cent once they have gone through the process. With the banks, you have specialists who are a jack of all trades, but master of none. They know just enough to be dangerous.”
That may be reflected in the Angus Reid online survey, commissioned by ING Direct and canvassing respondents on a host of mortgage experiences.
Some 65 per cent of respondents age 18 – 34 indicated haggling for a rate was among the most stressful part of the mortgage process while over half (56 per cent) agreed researching and comparing offers made the process more difficult.
Most (59 per cent) found that renegotiating for a rate was stressful, while deciding on the right term and payment schedule (55 per cent) and getting customer service help from the lender (35 per cent) were close behind.
More damning of the process itself, 67 per cent of Canadians surveyed who currently have a mortgage feel the process was either too complicated (31 per cent), confusing (20 per cent) or hard to figure out (16 per cent).
“There is a battle for clients out there, and a real lack of knowledge among people looking for a mortgage,” Friesen told MortgageBrokerNews.ca. “That is what we need to do as brokers: move them beyond the ‘low rate gratification’ and spend an hour just to get to know them, and find out what their needs are.”
Friesen does tip his hat to ING, describing them as a “great friend to the broker industry” before they officially left the channel in February.
Since ING’s takeover by Scotia
last year and its departure from the broker channel in February, there has been a transition of staff and clients to Scotia as the big bank is now focused on the broker channel, while ING has dedicated itself to the direct-to-consumer model.
“Whether you're a first-time home buyer or shopping around for a new mortgage, applying for a mortgage doesn't have to be a confusing or complicated experience," states Peter Aceto, president and CEO of ING Direct. “Choosing a bank that provides a great rate up front and offers flexible terms means saving both time and money over the long run.”
The February 27 online survey was conducted among a sample of 1,519 Canadians who are Angus Reid Forum panel members, with a margin of error +/-2.5 per cent, 19 times out of 20.