Nothing confirms things like a good old-fashioned survey.When I wrote about the perils of Canadian debt (Spending 'til it Hurts) I had no idea that CMHC would soon be confirming those ideas; but they did, with the spin cycle set on high.
Today, CMHC released the results of a survey showing that Canadian consumers are not - in the least - concerned about their high debt levels. In fact, 68% of new homeowners feel that they will be able to pay off their mortgages early, which means that they expect free cash flow and good times ahead.
The report also confirms that Canadian consumers feel they are savvy real estate investors, due to the extensive "self-education" they undertake before making purchases. This self-education includes consulting mortgage brokers, lenders, and real estate agents (all of whom have a vested interest in selling homes).
As a side note, the CMHC report frequently reads like an advertisement for mortgage brokers, including this gem: "According to mortgage consumers, the benefits that mortgage brokers offer are that they are able to get the best deal or rate for their clients, they are convenient, and they offer time-savings when obtaining a mortgage." On the same page is a photo of a smiling, embracing couple: presumably homeowners.
Hubris and propaganda continue to feel the love in Canada.
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CMHC survey
CNBC article (regarding CMHC survey)
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"(It's) actual mandate today, which is different from what it was back 20 or 30 years ago, is really just to get people into houses...and that's always been something that bothers me, because it really doesn't have a stability mandate."
David Dodge, former Governor of the Bank of Canada, describing the role of the Canadian Mortgage and Housing Corporation (CMHC), February 2010.
