Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Home Financing - Canada - June 2019

Covered in this report

  • Home Equity Line of Credit (HELOC): a line of credit (LOC) secured by property offered as collateral against the debt. This usually allows the borrower to have access to a higher limit and a lower interest rate than would be offered by a LOC that is not backed by a real estate asset
  • Reverse mortgage: a loan that is designed for homeowners 55 years of age and older that is secured by the equity in the home, allowing homeowners to obtain cash without having to sell their home
  • Home equity loan: also known as second mortgage is another loan taken against a property that is already mortgaged.
  • Shared Equity Mortgage (SEM): a financing arrangement wherein another buyer helps shoulder the cost of buying a home by contributing money to the down payment. In exchange, that buyer shares in the home’s equity

“Mortgage payments are significantly impacting the lifestyle of around half of younger mortgage holders, as housing affordability becomes a national concern.”
– Sanjay Sharma, Senior Financial Services Analyst

This report looks at the following areas:

  • Around half of homeowners have a current mortgage
  • Around three in four make timely mortgage payments
  • Most would recommend their lender
  • Around two in five renters view it as a lifestyle choice

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

      • Regional classifications
        • Income
          • Definitions
          • Executive Summary

              • The issues
                • Around half of homeowners have a current mortgage
                  • Figure 1: Current type of home financing, April 2019
                • Around three in four make timely mortgage payments
                  • Figure 2: Financing behaviours, April 2019
                • Most would recommend their lender
                  • Figure 3: Mortgage attitudes (% agree), April 2019
                • Around two in five renters view it as a lifestyle choice
                  • Figure 4: Attitudes and behaviours of renters, April 2019
                • The opportunities
                  • Older borrowers more likely to use primary bank/credit union
                    • Figure 5: Mortgage lender search, April 2019
                  • Young more likely to be influenced by recommendations
                    • Figure 6: Mortgage lender search (select), 18-44s vs over-45s, April 2019
                  • Around half of 18-44 open to borrowing from private lenders
                    • Figure 7: Mortgage behaviours (% agree), April 2019
                  • What it means
                  • The Market – What You Need to Know

                    • Canada’s tougher mortgage qualifying rules
                      • Impact of recent policy changes on the mortgage market
                        • Shared equity mortgages coming to Canada
                          • Other federal budget housing initiatives
                            • Regional measures to cool housing markets
                            • Market Perspective

                              • Canada’s tougher mortgage qualifying rules
                                • Impact of recent policy changes on the mortgage market
                                  • Self-employed buyers increasingly turning to private lenders
                                    • Home prices go eight straight months without an increase…
                                      • …but Canada home sales rise for second straight month
                                        • Rental vacancy rate dips to 2.4% across Canada
                                        • What’s New – Regulatory Initiatives

                                          • Shared equity mortgages coming to Canada
                                            • Other Federal budget housing initiatives
                                              • British Columbia’s speculation and vacancy tax
                                                • Ontario’s non-resident tax
                                                • Key Players – What You Need to Know

                                                  • Chinese takeover of mortgage insurer Genworth stalled
                                                    • Ontario says it will fix ‘broken’ new home warranty programme
                                                      • Non-residents own 3.7% of BC homes, much higher in new units
                                                        • Canada considers applying mortgage stress test rules to private lenders
                                                          • Stress tests disqualifying 18% of Canadian home buyers
                                                            • Bank of Canada urges lenders to offer longer-term mortgages
                                                            • Industry Developments and Innovations

                                                              • Chinese takeover of mortgage insurer Genworth stalled
                                                                • Ontario says it will fix ‘broken’ new home warranty programme
                                                                  • Non-residents own 3.7% of BC homes, much higher in new units
                                                                    • Canada considers applying mortgage stress test rules to private lenders
                                                                      • Stress tests disqualifying 18% of Canadian home buyers
                                                                        • Bank of Canada urges lenders to offer longer-term mortgages
                                                                        • Marketing Campaigns

                                                                          • TD executes strategy to offer a “curated, digital-first home-buying experience”
                                                                            • Figure 8: TD Bank Mortgage concierge feature, June 2018
                                                                          • RBC’s direct mortgage marketing focuses on its digital tools
                                                                            • Figure 9: RBC direct mortgage email marketing campaign, November 2017
                                                                          • Scotiabank promotes mobile connectivity with experts
                                                                            • Figure 10: Scotiabank mobile home advisor digital campaign, October 2017
                                                                          • Manulife’s “uncover the mortgage truth”
                                                                              • Figure 11: Manulife One – Mortgage Crasher, April 2018
                                                                          • The Consumer – What You Need to Know

                                                                            • Around two in three Canadians are homeowners
                                                                              • Primary bank is the top source of lender
                                                                                • Around half of homeowners have a current mortgage
                                                                                  • Around three in four make timely mortgage payments
                                                                                    • Most would recommend their lender
                                                                                      • Around two in five renters view it as a lifestyle choice
                                                                                        • Majority shop for approved amount and begin search before pre-approval
                                                                                        • Home Purchasing Intention & Behaviour

                                                                                          • Around two in three Canadians are homeowners
                                                                                            • Figure 12: Ownership of primary residence, April 2019
                                                                                          • Younger homeowners more likely to be living in a new home/condo
                                                                                            • Figure 13: Type of home purchased, April 2019
                                                                                          • Around half of Millennials plan to purchase a home in next five years
                                                                                            • Figure 14: Home purchasing intention, April 2019
                                                                                            • Figure 15: Home purchase intention in the next 5 years, by age, April 2019
                                                                                          • Around a third of homeowners have bought their home in the last five years
                                                                                            • Figure 16: Home purchasing behaviour, April 2019
                                                                                        • Home Financing

                                                                                          • Around half of homeowners have a current mortgage
                                                                                            • Figure 17: Current type of home financing, April 2019
                                                                                          • Less than one in 10 have a HELOC
                                                                                            • Reverse mortgages have not really caught on
                                                                                              • Majority of young and middle-aged consumers still paying down mortgage
                                                                                                • Figure 18: Current type of home financing (select), 18-44s vs over-45s, April 2019
                                                                                              • Younger more likely to have home equity loan products
                                                                                              • Mortgage Lender Search

                                                                                                • Primary bank is the top source of lender
                                                                                                  • Figure 19: Mortgage lender search, April 2019
                                                                                                • Older borrowers more likely to use primary bank/credit union
                                                                                                  • Young more likely to be influenced by recommendations
                                                                                                    • Figure 20: Mortgage lender search (select), 18-44s vs over-45s, April 2019
                                                                                                  • Advertising and social media used less by women
                                                                                                    • Figure 21: Mortgage lender search (select), by gender, April 2019
                                                                                                  • TURF analysis for mortgage lender search
                                                                                                    • Methodology
                                                                                                      • Three in five source their lender through primary bank or friends/family
                                                                                                        • Figure 22: TURF analysis – mortgage lender search, April 2019
                                                                                                        • Figure 23: Table – TURF analysis – mortgage lender search, April 2019
                                                                                                    • Financing Behaviours

                                                                                                      • Around three in four make timely mortgage payments
                                                                                                        • Figure 24: Financing behaviours, April 2019
                                                                                                      • Older Canadians are more aware
                                                                                                        • Figure 25: Financing behaviours (select), 18-44s vs over-45s, April 2019
                                                                                                      • Limited mobile payments usage
                                                                                                        • British Columbians are more conscious of interest rates
                                                                                                          • Figure 26: Financing behaviours, British Columbians vs overall population, April 2019
                                                                                                      • Mortgage Attitudes

                                                                                                        • Most would recommend their lender
                                                                                                          • Figure 27: Mortgage attitudes (% agree), April 2019
                                                                                                        • Branch networks are a strong contributor to mortgage sales
                                                                                                          • Men are digitally keener
                                                                                                            • Figure 28: Select mortgage attitudes (% agree), by gender, April 2019
                                                                                                          • Higher income earners and Asian Canadians are also more keen on tech
                                                                                                            • Figure 29: Select mortgage attitudes (% agree), by income, April 2019
                                                                                                          • Younger mortgage holders have a more favourable opinion of mortgage brokers
                                                                                                            • Figure 30: Select mortgage attitudes (% agree), 18-44s vs over-45s, April 2019
                                                                                                        • Mortgage Behaviours

                                                                                                          • Around half of 18-44s open to borrowing from private lenders
                                                                                                            • Figure 31: Mortgage behaviours (% agree), April 2019
                                                                                                          • Majority shop for approved amount and begin search before pre-approval
                                                                                                            • Figure 32: Select mortgage behaviours (% agree), 18-44s vs over-45s, April 2019
                                                                                                          • Younger and lower income will have more trouble with rising rates
                                                                                                          • Behaviours and Attitudes of Renters

                                                                                                            • Around two in five renters view it as a lifestyle choice
                                                                                                              • Figure 33: Attitudes and behaviours of renters, April 2019
                                                                                                            • Older renters are less enamoured with home ownership
                                                                                                              • Figure 34: Attitudes and behaviours of renters, 18-44s vs over-45s, April 2019
                                                                                                            • Higher-income renters keener on home ownership
                                                                                                              • Figure 35: Select attitudes and behaviours of renters, by income, April 2019
                                                                                                          • Appendix – Data Sources and Abbreviations

                                                                                                            • Data sources
                                                                                                              • Consumer survey data
                                                                                                                • Consumer qualitative research
                                                                                                                  • Abbreviations and terms

                                                                                                                  Home Financing - Canada - June 2019

                                                                                                                  £3,435.47 (Excl.Tax)