According to a recent Ipsos survey commissioned by LowestRates.ca, Canadians are jumping into big financial decisions too quickly.
Canadians, in general, are committed to finding a bargain. But when it comes to the most important personal financial decisions, many are not conducting their due-diligence. The average Canadian, for example, spends less time choosing a mortgage provider than planning a vacation.
I found these survey results of the personal financial habits of Canadians, pertaining specifically to major decisions, like choosing a mortgage provider, very interesting!
It is interesting comparing how much time we spend thinking of vacation destinations and paint colours versus shopping for a good mortgage rate or insurance premium!
It’s hard to fault people for allotting more time to more enjoyable tasks in life. Part of the fun of vacationing is the planning. It’s something people like to do. Selecting a paint colour isn’t necessarily fun in the same way, but it is a decision that impacts people in a tangible manner, on a daily basis.
Whereas premiums and monthly payments might make us cringe they are something we only face once a month (or less), and oftentimes the action required to make those payments is automated. The paint in our bedroom is something we see everyday, which in that sense, certainly makes choosing one we like looking at seem like a monumental decision.
But of course this perception is skewed to favour immediate, visible gratification. Choosing a mortgage provider or auto insurer may be strenuous, boring or even painful, and the results of that decision are not quickly obvious, yet still, the actual impact of choosing one mortgage provider over the other will have a far greater impact than saving a $100 on a flight. And it goes without saying that the money saved by choosing the most cost-efficient mortgage provider puts the money in your pocket to indulge a little more with travel or home decor. The irony!