Variable rate mortgages appear to be falling out of favour with Canadians, according to a recent RateHub study.
According to the company’s Digital Money Trends Report, searches for variable rate mortgages fell by 12% to just 30% of all mortgage rate requests through its rate comparison tool. The report also found a growing penchant to save 20% for a down payment.
Both those trends are being attributed to recent mortgage rule changes, which have influence an uptick in mortgage rates and made it harder to qualify for insured mortgages.
Consumers are also becoming more tech-savvy in their pursuit of the perfect mortgage.
“The mortgage industry has fluctuated drastically over the last 10 years, and with several regulation changes in just the last quarter of 2016, the RateHub report reflects how Canadians are reacting,” said James Laird, Co-founder of RateHub.ca and President of CanWise Financial. “Consumers are going online first to self-educate, and finding comparison sites like RateHub that can help them navigate an ever-changing market.”
The report also provided some insight into which Canadians might be more inclined to work with a mortgage broker.
According to the report, 51% of Millennial respondents attained their mortgage through their primary financial institution, compared to 50% of Gen Xers and 69% of Baby Boomers.
“Millennials are more likely to use a mortgage broker,” RateHub said in the report. “Thirty-seven percent used a mortgage broker, compared to 30% of Generation Xers and 16% of boomers.
And Mortgages are becoming a hot topic for online searches.
The report found 750,000 mortgage-related searches are made each month. Some hot topics are calculators (525,000), banks (247,000), rates (144,000), brokers (59,000), and affordability (23,000).
To read the report in its entirety, click here
Mortgage rate type preference and down payment plans, among many other trends, found in recent report.