Canadians have earned a reputation as being financially conservative, and it seems to be well deserved, at least when it comes to their mortgage debt. A recent survey by Canada Mortgage and Housing Corporation (CMHC) shows that 78% of Canadians who recently purchased a new home intend to pay off their mortgage as quickly as possible, and many have already taken steps toward that goal.

According to CMHC’s 2007 Mortgage Consumer Survey, Canadians remain fundamentally cautious when it comes to their mortgage debt. New homeowners are working to pay down the principal early and are accelerating payments, which CMHC considers a good indication that this responsible behaviour will continue throughout the life of their mortgage.

The 2007 survey focused primarily on recent purchasers and included questions on homeowner behaviour regarding mortgage debt re-payment since arranging their mortgage. More than half of recent purchasers agreed that, whenever possible, they would use extra money to pay down the principal on their mortgage. CMHC’s survey revealed recent purchasers are acting on these intentions, with one-third at some point having made a lump sum payment to their mortgage. Also, well over half reported making weekly or biweekly payments, and the majority of these (84%) are being made on an accelerated basis, which has the effect of shortening the original amortization period.

This kind of consumer behaviour creates a solid financial footing that will help to drive the Canadian real estate market forward. Forecasts are calling for the market to continue strong throughout 2008, and property values are predicted to climb to new heights in 2009, although at a somewhat slower pace than this year. Real estate remains a solid long-term investment, and it's not too late to get into the market and benefit from some of the appreciation in value that’s still to come.

Want to know more about property values in your neighbourhood and the forecast for what’s ahead? Contact your local real estate professional and take advantage of their advice. You can even learn more about how to pay down your mortgage faster and join the majority of Canadians who want to do the same!