Canadian Institute of Mortgage Brokers and Lenders (CIMBL) releases report on Canada's residential mortgage market

October 19, 2005 (Toronto, ON) - Ninety per cent of Canadians are satisfied with the terms of their mortgages, according to a report released today by the Canadian Institute of Mortgage Brokers and Lenders (CIMBL). The information, gathered by Pollara in a phone survey in September indicates that low interest rates are the primary reason for this satisfaction and low rates are expected to continue to fuel growth in the residential mortgage market.

"We are pleased and impressed that most Canadians say they are satisfied with the mortgage market," said Ron Swift, President of the Canadian Institute of Mortgage Brokers and Lenders. "As a result, we expect that Canadians will continue to borrow - whether they are taking out a new mortgage, or renewing or refinancing an existing mortgage.

Yesterday, the Bank of Canada announced that it will raise its target for the overnight national interest rate by one-quarter of one percentage point to 4.75% for the Bank of Canada rate. CIMBL expects that this will not deter potential home buyers, but it may prompt some consumers to refinance their mortgages.

"The growth of the mortgage market is also due to the volume of new approvals which not only includes new mortgages, but also includes transfers between lenders as well as refinances of existing mortgages," said Swift. "The trend towards refinancing is rooted in the fact that Canadians have a choice and often this choice is provided by a mortgage professional that is able to shop around and find the best mortgage solution for his/her client."

Based on survey results and market analysis, CIMBL expects mortgages to continue their rapid expansion during 2006 and approvals of residential mortgages (including new mortgages, transfers between lenders and refinancing of existing mortgages) could rise from $161 billion in 2004 to $180 billion in 2005 and $189 billion in 2006.