Examining the Preferences and Choices For Mortgage Decision-Making
When it Comes to Mortgages, Rates and bonus Rewards Can Make A Difference
Toronto, ONTARIO - An Ipsos-Reid poll, conducted on behalf of Presidents Choice Financial, and released today investigates Canadian consumers' decision-making about home mortgages. When making these decisions, the mortgage lender offering a competitive rate of interest is seen as important by almost all (97%) of those surveyed. Additional factors deemed important are recommendations from friends and family (by 58%), offering a competitive rate and bonus points redeemable towards travel (by 42%) and a competitive rate and bonus points redeemable towards travel or towards retail items such as appliances, TV's or grocery purchases (also by 42%).
These findings are from an Ipsos-Reid poll conducted by telephone between August 7th and August 17th, 2003. The poll was conducted among 885 randomly selected adult Canadians who are personally involved in decisions about home mortgages. A sample of 885 yields results accurate to within 177 3.3 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population of mortgage decision-makers been polled. Sub-sets of this sample, such as regions or provinces, have a wider accuracy range.
Some of the highlights from the poll follow:
Decisions About Mortgages
When asked about specific criteria deemed important in making decisions about shopping for mortgages, these Canadians noted the following:
- Almost all (97%) rated `the mortgage lender offers a competitive rate of interest' as very (85%) or somewhat important (12%) when shopping for mortgages
- Not surprisingly, rates are important for mortgage decision-makers across all regions of the country and among each demographic segment of the market
- Almost three-in-five (58%) rated as important, either very (15%) or somewhat (43%), that `the mortgage lender is recommended by friends or family.'
- Females (63%) and those under the age of 35 (70%) were more likely to feel these recommendations are important.
- Mortgage decision-makers in the Atlantic Region are more likely to cite recommendations (68%) than those in other parts of the country.
- Females (63%) and those under the age of 35 (70%) were more likely to feel these recommendations are important.
- Just over two-in-five (42%) rated `the mortgage lender offers a competitive rate and bonus points redeemable towards travel' as important, either very (13%) or somewhat (29%).
- Travel bonus points are seen as slightly more important among women (45%) and more important among those under age 35 (52%).
- By region/province, British Columbia (50%) and the Atlantic Region (61%) are ahead of the other areas in this regard.
- Travel bonus points are seen as slightly more important among women (45%) and more important among those under age 35 (52%).
- A similar proportion (42%) rated `the mortgage lender offers a competitive rate and bonus points redeemable towards retail items such as appliances, TV's or grocery purchases' as important, either very (13%) or somewhat (29%).
- Bonus points towards merchandise are of most interest to those under age 35 (54%) and among residents of the Atlantic Region (54%), Ontario and the Prairie Region (each around 45%).
- Mortgage decision-makers were also asked about preferences for specific types of bonus points programs. The question read, "If a mortgage lender offered a competitive rate of interest and the opportunity to earn bonus points, which of the following types of bonus points would you be interested in?" Three choices were then read: bonus points towards travel, groceries or household goods.
- Each of the three bonus points programs received approximately the same level of interest as `first choice':
- One-third (34%) selected bonus points for travel as their first choice of the three cited in the survey. Many Canadians are familiar with travel reward programs tied to credit cards. This familiarity might be a factor in the level of interest expressed for a mortgage bonus program with travel rewards. The level of interest in this type of program was greatest in British Columbia (42%).
- Approximately the same proportion (32%) selected bonus points towards groceries as their first choice. Women (35%) were more likely to favour this type of program than men (28%).
- Just over one-quarter (27%) picked bonus points towards household goods as their favoured choice among the three programs. Those under age 35 were more likely to select this type of bonus program (33%) than the older age segments.
- One-third (34%) selected bonus points for travel as their first choice of the three cited in the survey. Many Canadians are familiar with travel reward programs tied to credit cards. This familiarity might be a factor in the level of interest expressed for a mortgage bonus program with travel rewards. The level of interest in this type of program was greatest in British Columbia (42%).
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For more information, please contact:
Ray Kong
Ipsos-Reid
(416) 324-2106
Or
Jeff Roman
Corporate and Public Affairs
Edelman
(416) 979-1120
