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 police official blamed for not sending officers in more quickly to stop the Uvalde, Texas, school shooting is the chief of the school system's small police force, a unit dedicated ordinarily to building relationships with students and responding to the occasional fight.
Speakers at the National Rifle Association annual meeting assailed a Chicago gun ban that doesn't exist, ignored security upgrades at the Texas school where children were slaughtered and roundly distorted national gun and crime statistics as they pushed back against any tightening of gun laws.
Fifty-eight-year-old Vivian Ketchum is set to receive her high school diploma at a graduation ceremony at the University of Winnipeg next month. It is a moment that is decades in the making.
The World Economic Forum’s annual meeting in Davos was met with justifiable criticisms and unfounded conspiracy theories.
An 11-year-old survivor of the Robb Elementary School massacre in Uvalde, Texas, feared the gunman would come back for her so she smeared herself in her friend's blood and played dead.
Students trapped inside a classroom with a gunman repeatedly called 911 during this week's attack on a Texas elementary school, including one who pleaded, 'Please send the police now,' as officers waited more than an hour to breach the classroom after following the gunman into the building, authorities said Friday.
Fragments of a comet broken nearly 30 years ago could potentially light up the night sky Monday as experts predict an 'all or nothing' spectacle.
A new report says Ottawa, Vancouver and Toronto rank among the top 20 cities around the world when it comes to work-life balance.
Transport Minister Omar Alghabra says the federal government is working with groups on the ground to resolve air travel 'bottlenecks' in time for a busy summer.
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.
Canada's highest court has ruled that Alexandre Bissonnette, who murdered six people at the Quebec City mosque in 2017, will be eligible for parole after 25 years.
Quebec says it is ready to vaccinate people who have come into close contact with monkeypox as soon as Friday.
Saturday’s powerful storm left a lasting impact across Ontario as city crews continue to deal with the damage. Western University’s Northern Tornado Project reported that two EF-1 tornadoes touched down in London — and on Friday, Environment Canada confirmed it.
A London man is facing impaired-related charges after a vehicle he was driving collided with a gravel truck on Wednesday morning, according to police.
The London Police Service is requesting the public’s help with locating a person of interest after a gun was fired on Richmond Row in the early morning hours of Friday.
A man, who was a referee at high school volleyball games in Guelph for more than 30 years, is facing sex assault-related charges.
The Region of Waterloo says there's a high safety risk at a Kitchener encampment and they are working with residents to prepare them for their eventual move.
Two low-cost airlines are butting heads over an agreement at the Region of Waterloo International Airport. Swoop wants to offer flights but the airport already has an exclusivity deal with rival Flair Airlines
Thursday evening, the Greater Sudbury Chamber of Commerce hosted the 25th annual Bell Business Excellence Awards.
On Friday, there was a walk in Sudbury to remember the remains of 215 residential schoolchildren found in Kamloops, B.C., a year ago May 27.
Staff at the new Sault Metis Centre are getting set for the grand opening Saturday.
As of Friday evening, 26,000 Hydro Ottawa customers remain without power in all neighbourhoods of the city.
Approximately 25,000 people will take part in Tamarack Ottawa Race Weekend on Saturday and Sunday.
Ottawa Bylaw says the "mama and her 4 kittens" were abandoned outside the PetSmart on Innes Road sometime between 6 a.m. and 8 a.m. Friday.
Windsor police are asking for the public’s help identify a driver who fled after a rollover crash.
'Just do Mable things': Father of 18-year-old Pain Court crash victim shares memories of his daughter
It’s been a long and sorrow-filled week for the extended families of Mable Baker, an 18-year-old Chatham-Kent woman who was involved in a fatal car crash last weekend.
A local musician will be back on stage for the 16th annual 24-Hour Drum Marathon.
On the final day of the Paul Sadlon sexual assault trial, the defence called the complainant's allegations "straight out lies" and "not believable at all."
Provincial police are searching for a missing senior who went for a walk with his two dogs on trails behind his home in Springwater Township Thursday afternoon.
An Aurora couple is making plans to buy a house after winning the lottery.
A Cape Breton father is warning the public of the dangers in the area he lives after his teenager son fell nearly 40 feet over a cliff in Glace Bay.
A lawyer for families of victims killed in the Nova Scotia mass shooting says an 18-hour delay in finding five bodies of those murdered is a sign of "deficient" policing.
The lawyer who represented a man who murdered three RCMP officers nearly eight years ago in Moncton, N.B., said a decision made by the Supreme Court of Canada Friday may potentially change his sentence.
A southern Alberta man who killed three people, including a two-year-old girl, could have the ability to request a release from jail earlier than his original sentence intended, thanks to a landmark Supreme Court decision Friday.
Calgary Flames fans are still coming to terms with a playoff series loss to the Edmonton Oilers Thursday night in a game that saw both controversy and heartbreak following a Connor McDavid overtime goal.
Western Canada's premiers want to reform their health-care systems by expanding services but they say Ottawa first needs to pick up the phone.
Pembina Trails School Division is confirming to CTV News that a group of students found a body during community cleanup at Ècole South Pointe School.
Winnipeg police are telling people to find an alternate route this afternoon as they are investigating a fatal crash near the St. Boniface Industrial Park.
'It's one way to be creative': Winnipeg student wants to be a bartender when older; school doesn't like comment in yearbook
Bartender. That is what one Grade 4 student said for the yearbook when asked what he wanted to be when he grows up, an answer the school is asking him to change.
A B.C. mom with a rare, debilitating illness has spent years trying to get the help she needs. Now she's considering medical assistance in dying.
The number of COVID-19 patients in B.C. hospitals hit its lowest point in more than a month this week, and the decline was driven largely by regions outside the Lower Mainland.
Researchers working in partnership with UBC believe an eco-friendly material could help solve the world’s plastic pollution problem.
A hotly-controversial decision on whether or not to freeze base funding for police in Edmonton was delayed Friday as fallout from a dispute between the mayor and the provincial justice minister continued to rattle political circles.
A 19-year-old man is in police custody after a shooting near Rogers Place after an Edmonton Oilers viewing party ended Thursday evening.
A shelter many expected to remain open until the end of June in Wetaskiwin, Alta., will close a month early.