Trend To Faster Mortgage Repayment
“Canadian’s Apparently Want To Repay Mortgages Faster And Lenders Are Trying To Accommodate”
I was reading an article this week about a survey recently completed by Scotiabank that indicated Canadians, on average, want to repay their mortgages faster.
Here’s a link to the article http://www.newswire.ca/en/releases/archive/May2011/10/c2848.html
Typically, when a major brand commissions this type of survey they are either looking for support for a marketing angle they want to push, or they are actually trying to figure out what the public wants.
In any event, providing more mortgage options to consumers is more likely a good thing so good for Scotiabank for trying to fill (or create) a need that provides a real benefit to mortgage holders.
This is also very interesting stuff in that historically it would be basically taboo for a mortgage lender to even suggest such things due to the long term nature of the revenue stream they can generate from a long term mortgage, especially one with an maximum amortization period.
But with the expansion of services in the major banks, this could be a good strategy to try and move mortgage savings into long term investments which is still good for the borrower and good for the bank.
I’m not quite sure all mortgage lenders are going to be as quick to be teaching their customers how to get rid of their mortgages sooner, but I do believe that this is an area of the market that could use more education and more options from mortgage lenders.
This is not to say I completely agree with Scotiabank’s survey results, as all surveys these days are more prone to larger errors due to the fact that we are getting surveyed to death by telephone operators conducting these surveys.
I digress as that’s a whole nother ball of wax when it comes to having a healthy dose of skepticism any time big brands start firing around numbers.
At the same time, there will always be a percentage of the market that would respond to this type of marketing and mortgage program enhancement and as a result Scotiabank and others can use it to gain the wallet of consumers in the highly competitive “A” mortgage market.
In the end, this should all be good news to consumers.
A competitive market with more choice is one of the great things about being a mortgage borrower in Canada.
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel
