Just 33% of Canadian homeowners with a mortgage have read their entire mortgage agreement according to the 2015 Scotiabank Mortgage Poll.
Of those survey respondents who have read at least some of their mortgage agreement, only 27% understood all of the details in the agreement.
The poll also indicates that 84% Canadian homeowners and prospective owners surveyed consider competitive interest rates as the most important factor to selecting a mortgage. The next most important factors indicated were flexibility to repay the mortgage at any time without penalty (63%) and prepayment privileges without penalty (60%).
“Buying a home is both exhilarating and stressful, which is why a meeting with a financial advisor to understand all of the terms and conditions of a mortgage agreement will ensure customers get the mortgage that is right for them,” says Bank of Nova Scotia’s David Stafford, managing director of real estate secured lending.
“Flexible features like prepayment privileges, bi-weekly payments and the ability to port your mortgage can save customers thousands in interest and fees over the long term.”
The online survey conducted for Scotiabank by Nielsen among 1,008 Nielsen panel members who either own a home or plan to purchase in the next wo years. Data was collected from Jan. 28 through Feb. 6.