Most homeowners don't compare mortgage rates on renewal

Using websites to compare travel products has become widespread but the same does not appear to be true when it comes to financial products including mortgages.

Although 60% of those cold by Ipsos for lowestrate.ca said they do a lot of research when arranging a mortgage that fall sharply when it comes to renewals.

When renewing their home loan just 42% of homeowners do a lot of research and 22% renew without doing any research at all.

When arranging a new mortgage or renewing, baby boomers are least likely to do research on mortgage rates (27%) while 48% of millennials do so; Gen-Xers fall between the two groups.

The low rates of comparing deals is also seen across other financial products including credit cards and car insurance.
“The massive gulf between Canadians who compare travel options and financial products is disappointing. Because the latter is where you save real money," says Justin Thouin, CEO LowestRates.ca.

Consumers in Alberta are most likely to do a lot of research when shopping for financial products (45%) with those in Ontario just behind (41%) followed by Atlantic Canada (39%) Saskatchewan and Manitoba (38%), Québec (35%) and British Columbia (31%).

"A few months ago, we found that many Canadians don't understand how common financial products work," adds Thouin. "And this survey really hammers home that a large part of that is because Canadians can't be bothered. We need to make comparing financial products as common as comparing flights or hotels."

MBN

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