Snapshot: Canadian mindset on mortgages

Some Canadians with mortgages think they might carry them into retirement

TORONTO, Nov. 5, 2012 /CNW/ - According to a recent Scotiabank poll, the role of the Canadian home is key, with the majority of Canadians (77 per cent) indicating their home is an investment rather than an expense. The investment may extend beyond retirement for some; among those mortgage holders not yet retired, one-third (32 per cent) say they will likely still have their mortgage when they retire. That said, Canadians are eager to leave their mortgages behind, with almost three-quarters (72 per cent) of Canadian mortgage holders taking at least one step to becoming mortgage-free faster. When it comes to mortgage-mindset - Canadians are thinking in the right direction:

• Two-thirds (69 per cent) of Canadians report owning a home. For Canadian home owners, 40 per cent are living mortgage-free.
• The majority (81 per cent) of Canadians agree it is important to become mortgage-free as soon as possible.
• The most common step Canadians are taking to pay off their mortgage faster is to increase the frequency of their regular payments (29 per cent).
• One-third of Canadians (34 per cent) say they will be relying on their home equity to support them in retirement.

"What I want Canadians who are feeling a little overwhelmed in paying off their mortgages to know is that paying off their mortgage is totally achievable, and the great news is that a number of Canadians who were in the same position have reached the goal of being mortgage-free," said David Stafford, Managing Director of Real Estate Secured Lending at Scotiabank. "With rates at historic lows, there's never been a better time to take years off your mortgage. We've helped customers across the country become mortgage-free faster - by visiting our financial advisors, you can receive personalized advice on how to do the same without an impact on your lifestyle."

For more information and tips about Scotiabank's mortgage offers, suite of strategies and solutions please visit www.scotiabank.com.

About the polling data
The Scotiabank Mega Poll was conducted through Harris/Decima's telephone omnibus, teleVox from June 18 through 28, 2012.  A total of 2,013 surveys were conducted nationally with Canadians respondents 18 plus years of age.

About Scotiabank
Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 81,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets of $670 billion (as at July 31, 2012), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

Did you know? November is Financial Literacy Month, to learn about Scotiabank's Financial Literacy Strategy please read the related press release on the Scotiabank Newsroom at www.scotiabank.com.

BACKGROUNDER: Canadian Mindset on Mortgages

• For Canadians who see the home as an investment, not as expense - the differences between the regions are as follows: Quebec (79 per cent) and Manitoba/Saskatchewan (80 per cent) more likely than Alberta (69 per cent).
  
  
• Women (80 per cent) are more likely then men (73 per cent) to agree that homes are an investment, not an expense.
  
  
• Among Canadians who don't own a home, 12 per cent plan on purchasing a home within the next year.
  
  
• Canadian homeowners over 55 are the most likely to currently be mortgage-free.
  
  
• For Canadian homeowners - the differences between the regions in terms of those who have a mortgage are as follows: Atlantic Canada (46 per cent) and Ontario (44 per cent) are more likely than Quebec (37 per cent) and British Columbia (31 per cent); and Alberta (44 per cent) also more likely than British Columbia (31 per cent).
  
  
• For Canadian homeowners - the difference between the regions in terms of those who do not have a mortgage are as follows: Manitoba/Saskatchewan (35 per cent) and British Columbia (36 per cent) more likely than Ontario (26 per cent); and British Columbia (36 per cent) also more likely than Quebec (27 per cent).
  
  
• Women are more likely than men to be renting their home (30 per cent of women vs. 24 per cent of men).
  
  
• Those who are between the ages of 35-54 are the most likely to say they are relying on their home equity to support their retirement (41 per cent).
  
  
• Mortgage holders in Manitoba/Saskatchewan (75 per cent) are more likely than those in Atlantic Canada (53 per cent) and Quebec (54 per cent) to indicate they can make additional mortgage payments.
  
  
• Male mortgage holders are more likely to be able to make additional mortgage payments (70 per cent vs. 51 per cent of women).

SOURCE: Scotiabank - Products & Services

Patty Stathokostas
Scotiabank
P: 416-866-3625
E: [email protected]