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).

A survey conducted for the CIMBL in September found 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, CIMBL president, in a release.

“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. The residential mortgage market could expand by 10 or 11% by the end of this year, to $660 billion and by the end of 2006 we expect another 10% growth for a year end figure of $725 billion.”

In the second quarter of 2005 there was $617 billion in outstanding residential mortgage credit in Canada.

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 3%. 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.

According to the September survey, mortgage holders report that, on average, they consulted 1.92 mortgage professionals when they obtained their current mortgage. The types of lenders consulted most frequently, according to survey respondents, are major Canadian banks (74%), credit unions (27%) and mortgage brokers (25%).

Among those who renewed or refinanced their mortgages in the past 12 months, 40% increased the amount of the mortgage and 60% did not. For those who increased their mortgages, the average increase is estimated at $25,100.

The CIMBL survey was conducted in September by POLLARA. The two part poll included a brief four-question telephone survey with 2,524 Canadians and a more in-depth 13 minute survey with 1,076 residential mortgage holders across the country. A sample of 2,524 Canadians ensures an accuracy of + 1.9%, 19 times out of 20. A sample of 1,076 mortgage holders ensures an accuracy of + 3.0%, 19 times out of 20.