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HOUSING: Albertans want to hurry up paying off mortgage debt
        (AlbertaIndex, March 21, Friday) — Albertans may be incurring more debt these days, but they have an admirable habit of wanting to pay off their mortgages as quickly as possible.
        In its 2007 mortgage consumer survey, Canada Mortgage and Housing Corporation (CMHC) said it found that 82 per cent of Alberta residents who recently purchased a home intend to pay off their mortgage as quickly as possible, compared to the national average of 78 per cent.

The 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.

“CMHC’s survey reveals that Canadians all across the country share the goal of paying off their mortgage debt quickly, and Albertans are leaders in this regard,” said Pierre Serré, Vice-President, Insurance Product & Business Development, CMHC.

“The survey also confirms that Albertans, like most Canadians, remain fundamentally cautious when it comes to managing their mortgage debt.”

Among recent homebuyers in Alberta, 50 per cent are making weekly or bi-weekly mortgage payments, and the majority of these are on an accelerated basis which has the effect of shortening the time required to pay off the mortgage. Also, nearly two-thirds of purchasers plan to reduce their mortgage amortization period when their mortgage comes up for renewal.

The survey also indicated that the proportion of Alberta purchasers who used the services of mortgage brokers in 2007 is higher than in most other parts of the country.  While, on average, 33 per cent of recent purchasers in Canada used a broker, in Alberta 41 per cent relied on a broker when arranging their mortgage.

As well, more Alberta homebuyers reported shopping around before obtaining their mortgage — 84 per cent of Albertan purchasers shopped around for the best mortgage deal, compared to the national average of 77 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.

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