Recent Poll Show’s Most Canadians are Unaware of New Mortgage Rules

July 13th, Toronto, Ontario, Canada

A new poll commissioned by the Bank of Montreal has concluded that nearly fifty percent of Canadians are unaware of the new mortgage rules recently passed by the Canadian government in June.

With the new mortgage rules for all Canadians that took effect on July 9th, many Canadians are still in the dark concerning this new legislation and how it will affect their home mortgages .  The poll has shown that over one quarter of Canadians still believe the maximum amortization period on mortgages insured by the Federal government is over 30 years, while less than half of Canadians surveyed, got the answer correct, that the maximum amortization period is now 25 years.

Although two-thirds of Canadians said that they were aware of the current rules put in place by Jim Flaherty, the Federal Finance Minister, less than half were are aware of these most recent changes.

The poll also looked into how the new rules will affect consumers purchasing behaviours when looking into purchasing a home. The study found some interesting results.  It appears that these latest changes will have very little effect on consumers’ intentions on buying homes currently and in the future. Only 14 percent of those surveys felt that the latest changes will make it less likely that they will purchase a home in the next 5 years.  41 percent of those polled felt that the new rules would make it more likely that they will end up spending less on a home in the next years than they would have if the new rules were not in place.  Lastly, nearly have of those surveyed (45 percent) said that it is more likely they will end up taking out a smaller mortgage in able to handle the shorter amortization period.

It has been generally accepted that these new rules were spurred on by the massive growth in the Toronto Condo market.

The survey was conducted over 6 days at the end of June and beginning of July 2012, with 1,000 Canadians selected randomly throughout the country.

Home Base Mortgages is a leading Toronto mortgage broker, which specializes in all types of mortgages ranging from home equity loans, second mortgages, private mortgages, mortgage refinancing, home mortgages and hard money lending.

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Mike Smith

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HBM

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