Genworth has just released their 2010 Mortgage & Financial Fitness survey results. A total of 2,001 interviews were completed between Mar. 4th-10th, 2010.
Results from this research show that there is a very strong correlation between home ownership and Financial Fitness. Those whose Financial Fitness is poor are much more likely to be renters, whereas those whose Fitness is good are much more likely to own, and to own without a mortgage.
● Despite the recession, most Canadians describe their Financial Fitness as being good
or very good –only 11 percent feel it is poor or very poor. Moreover, the index has
changed little since 2007. First Time Buyers/Intenders are just slightly ahead of the
national average on this index.
● Those in poor financial shape are more likely to be struggling to pay their bills or are
forced to borrow to get by.
● More describe themselves as being in neutral shape –neither good nor bad. Recent
buyers/intenders using mortgage insurance are not in poor financial shape.
● Only a quarter of mortgage owners took advantage of opportunities to accelerate
their mortgage payments or make a lump-sum payment.
● Only a quarter of first time buyers/intenders seek pre-approval from lenders.
● First time buyers/intenders as well as those needing mortgage insurance are more
likely to have spoken to a financial planner/coach in the past 12 months.
Genworth is another one of Canada’s mortgage insurance providers which protects the lenders in case there is a default in mortgage from the mortgagor.
In Canada, lenders are willing to make mortgage loans with downpayment less than 20% . Purchasers must get mortgage insurance if one is taking a loan of greater than 80% of the property value. The insurance premium is added to the mortgage.