Some homeowners spend more time planning vacations than reviewing their mortgage, survey finds
As the Bank of Canada is poised to possibly raise interest rates next week, a new survey has found that more than a third of homeowners spend more time planning their vacation than thinking about their mortgage.
“People should understand they are signing up for a long term commitment that is the largest purchase that most families will ever make,” said Huston Loke, Executive Vice President of Market Conduct with the Financial Services Regulatory Authority of Ontario (FSRA).
After years of historic low interest rates many economists believe the Bank of Canada will starting hiking it’s bench mark rate on Jan. 26 by 0.25 per cent, with more interest rate hikes to come later this year.
The FSRA said it’s new survey found that many people don't pay as much attention to their mortgage as they should, and if they did it could save them money.
The FSRA survey found that 38 per cent of those asked spent more time researching their next vacation than their mortgage.
“We know just how important these decisions are for borrowers,” said Loke.
Housing prices are rising, with the average price of a home in the GTA worth more than a million dollars and interest rates appear to be trending upward. The FSRA believes home owners could benefit by doing more research.
“This is part of a consumer being a smart consumer and being well informed and knowing the kind of professional they are dealing with. We encourage consumers to understand the mortgage decisions they are making," said Loke.
When getting a mortgage 67 per cent of homeowners use a bank specialist, while 29 per cent use a mortgage broker and three per cent use a private lender. Two per cent said they use other sources and the number does not add to 100 due to rounding, according to the survey.
FSRA has a code of conduct for mortgage brokers, but says wherever consumers take out a mortgage they should be given a suitable product for their situation.
For example, if someone is in a fixed mortgage, they should be advised there could be expensive penalties if they break the mortgage contract before the term is up.
Leah Zlatkin is a mortgage broker with LowestRates.ca and agrees people should spend more time understanding their mortgage agreements.
“The majority of people out there find personal finances and mortgages outside their comfort zone," said Zlatkin.
The survey also found 74 per cent feel more should be done to educate people on mortgages and mortgage brokers.
Whether you deal with a major bank or a broker understanding your mortgage details could potentially save you thousands of dollars a year.
“You need to speak to a professional who can walk you through the nuts and bolts of your situation" said Zlatkin.
If you have a variable mortgage you may want to consider locking into a fixed mortgage product, but there are pros and cons to each of them. It's why if you're not sure you should ask your lender which type would work best for you.
LowestRates.ca provided this example that shows how a 0.25 per cent rate increase could affect mortgage payments.
For the average Canadian home, priced at $720,000 (with a minimum down payment of 10 per cent amortized over 25 years), monthly mortgage payments based on a five-year variable rate of 0.95 per cent, would be $2,502.
According to LowestRates.ca’s mortgage payment calculator, the same mortgage payment with a 25 basis point rate increase, that monthly variable-rate mortgage payment estimate is $2,578, an increase of $76 per month or $912 per year.
By comparison, the same mortgage at today’s best five-year fixed rate on LowestRates.ca of 2.02 per cent, monthly mortgage costs would be $2,835.
Toronto Top Stories
CTVNews.ca Top Stories
The decision by police to wait before confronting the gunman at Robb Elementary School in Uvalde was a failure with catastrophic consequences, experts say. When it was all over 19 students and two teachers were dead.
A Dene filmmaker based in Vancouver says he was "disappointed" and "close to tears" when security at the Cannes Film Festival blocked him from walking the red carpet while dressed in a pair of moccasins.
As Russia asserted progress in its goal of seizing the entirety of contested eastern Ukraine, President Vladimir Putin tried Saturday to shake European resolve to punish his country with sanctions and to keep supplying weapons that have supported Ukraine's defence.
The actions — or more notably, the inaction — of a school district police chief and other law enforcement officers have become the centre of the investigation into this week's shocking school shooting in Uvalde, Texas.
Around a hundred people gathered at noon Saturday at the empty Vancouver home where Chelsea Poorman’s remains were found late last month to show their support for her family's call for answers and justice.
Canada and Finland won semifinal games Saturday to set up a third straight gold-medal showdown between the teams at the IIHF world hockey championship.
Riot police fired tear gas and pepper spray at Liverpool supporters forced to endure lengthy waits to get into the Champions League final amid logistical chaos and an attempt by UEFA and French authorities to blame overcrowding at turnstiles on people trying to access the stadium with fake tickets on Saturday.
One week after a severe wind and thunderstorm swept through Ontario and Quebec, just over 48,000 homes in the two provinces were still without power on Saturday.
The devastating storm in southern Ontario and Quebec last weekend damaged thousands of hydro poles across the two provinces. CTVNews.ca gives a rundown of where utility companies get their hydro poles from, as well as the climate challenges in the grid infrastructure.
Is it unconstitutional to make someone pay to get a legal document translated into French? One of Montreal's top lawyers thinks so, and pointed out two other things from Bill 96 that he thinks the courts would most easily find fault with.
Quebec announced special financial assistance to cover food losses suffered by those using social assistance programs following power outages.
The CAQ wants to promote the idea that they are proud people; proud of themselves, proud to be Quebecers. It is the main message the party is choosing to deliver to the population four months before the election.
St. Aidan’s Anglican Church unveiled a new art installation Saturday, in anticipation for pride month
As the provincial election campaign winds down the bid to secure critical votes heats up, with two party leaders, Doug Ford and Andrea Horwath, making a stop in London on Sunday.
The Glen Cairn community and Glen Cairn School collected over 1300 boxes of mac and cheese to create a domino line that would then be donated to the London Food Bank
The Kitchener-Waterloo Dixieland Jazz Club held a rumpus New Orleans-style wake on Saturday, in remembrance of its long-time director Nancy Pauli. Pauli passed away in February at the age of 81.
No driver's license was needed for a group of high-schoolers driving their own electric vehicles through the University of Waterloo campus on Saturday.
From crayons to corks, car seats, bicycles and batteries, the second semi-annual Re: Purpose Fest took place in Guelph Saturday afternoon.
A small but passionate group gathered Saturday to protest the Ford government and autism therapy wait times outside PC MPP candidate Vic Fedeli's campaign office on McKeown Avenue.
The Sudbury Defeat Depression Walk/Run returned to Bell Park on Saturday, as the COVID-19 pandemic eases and normal events resume.
A long line of cars wrapped around the Humane Society's parking lot in North Bay Saturday morning as dozens of cats and dogs got microchipped.
Hydro Ottawa says "we are close" to restoring power to the "bulk energy system" as crews enter "the last phase" of restoration efforts.
A 22-year-old Gatineau man died in hospital after being stabbed outside an establishment in Aylmer on Saturday morning.
It’s been one week since a devastating storm swept through the nation’s capital, knocking out power to tens of thousands of people.
When 96-year-old Frank Davis woke up Saturday morning from his home in London, Ont., he never expected to find himself grasping the bars of a motorcycle that had played such a crucial role in his life
A two-year hiatus is now over for the Windsor Optimist Youth Band. The group was reunited Saturday during an open recruitment and alumni day celebration.
Windsor Regional Hospital is postponing a number of non-emergency diagnostic imaging scans due to an international shortage of contrast dye.
A new autism centre in Barrie held its grand opening on Saturday.
A former PSW at a Roberta Place in Barrie is reflecting on his battle with COVID-19 one year later.
Provincial police say an 87-year old man from Springwater Township reported missing earlier this week has been found deceased.
Rough road to recovery for N.B. duty-free shop – still holding out hope border traffic will increase
A N.B. duty-free shop owner at the U.S.-Canada border says high fuel costs and lingering requirements at the border are hurting business.
Two special prosecutors tasked with taking on Nova Scotia's human trafficking cases are sharing some insight into what's currently happening in the province's courts.
Vinyl lovers packed a community centre in Riverview, N.B., Saturday in search of a hidden gem or the missing piece to their collection at the bi-annual Moncton Record Expo.
A spark on special teams gave the Calgary Stampeders the momentum they needed to beat the B.C. Lions 41-6 on Saturday.
Back on the track: Calgary high school athletes compete in city championships for first time since pandemic
More than 600 athletes from 29 schools competed Saturday in the first Calgary high school city championship competition since the COVID-19 pandemic began.
A group of volunteers spent their Saturday morning outfitting a Calgary home with new appliances, furniture and food for a family in need.
A building located on Mayfair Avenue is being declared a complete loss after a fire broke out Saturday morning.
In Manitoba, the average home price in April 2022 was around $372,000, which is up from April 2021, when the average price was around $328,000, according to Manitoba Real Estate Association.
It’s been nearly four months since the historic Kirkwood Block caught fire and was left in ruins, but it is now starting to be taken down.
A wave of resignations among Northern B.C. health-care workers – including half the doctors in the intensive care unit of the region’s biggest hospitals – is raising alarms among civic leaders already calling for an audit.
Volunteers in Vancouver are stepping their efforts as the city continues to see a rise in property crimes.
An emotional rally outside City Hall Saturday afternoon called for more permanent solutions to help keep Edmonton's Chinatown a vibrant community.
A slo pitch league in St. Albert is helping seniors stay active and have fun on the field.
A street in north Edmonton will bear the name of a Ukrainian dance company to honour their more than 50 years worth of contributions to the local arts and culture scene.