Supplier name: Ipsos Public Affairs
Contract Number: 5R000-180142/001/CY
Contract Value: $48,324.00
Award Date: 2018-04-27
Delivery Date: 2018-07-09
Methodological Report
Prepared for Financial Consumer Agency of Canada
Registration number: POR 004-18
For more information on this report, please contact Financial Consumer Agency of Canada at: por@fcac-acfc.gc.ca
Ce sommaire est aussi disponible en français.
I hereby certify as Senior Officer of Ipsos that the deliverables fully comply with the Government of Canada political neutrality requirements outlined in the Communications Policy of the Government of Canada and Procedures for Planning and Contracting Public Opinion Research. Specifically, the deliverables do not include information on electoral voting intentions, political party preferences, standings with the electorate or ratings of the performance of a political party or its leaders.
Mike Colledge
President
Ipsos Public Affairs
2018 Survey of Consumers’ Comprehension of Home Equity Lines of Credit
Prepared for Financial Consumer Agency of Canada
Supplier name: Ipsos Public Affairs
July 2018
This public opinion research report presents the results of an online survey conducted by Ipsos Public Affairs on behalf of Financial Consumer Agency of Canada. The research study was conducted with 4,792 Canadians aged 25 and over, including 3,642 homeowners between June 5th and June 28th, 2018.
This publication may be reproducted for non-commercial purposes only. Prior written permission must be obtatined from Financail Consumer Agency of Canada. For more information on this report, please contact Financial Consumer Agency of Canada at:
Catalogue Number: P103-13/2018E-PDF
International Standard Book Number (ISBN): 978-0-660-27362-4
Catalogue Number: P103-13/2018F-PDF (Final Report, French)
ISBN: 978-0-660-27363-1
© Copyright symbol Her Majesty the Queen in Right of Canada, as represented by the Minister of Public Works and Government Services, 2018
The research consisted of a quantitative online survey with a national sample of Canadians aged 25 years and older, which includes a sub-target of homeowners. To reach homeowners, the survey invitiations were targeted towards respondents who indicated that they own a house, condo, or co-op. In total, n=4,792 online surveys were completed, including n=3,642 homeowners. The survey was conducted in English and French taking place between June 5th and June 28th, 2018.
For this survey, rim weighting[1] was employed to balance demographics by three variables (Gender, Age and Region) to ensure that the survey sample’s composition reflects that of the adult population according to 2016 Census data and to provide results intended to approximate the sample universe.
Ipsos programmed, hosted and provided sample management services only, while the Financial Consumer Agency of Canada provided the online survey. Ipsos was responsible for data collection and data storage in Canada, data processing, and data weighting. The survey was registered with the National Survey Registration System (20180531-442P). The total contract value of this research was $48,324.00 including HST.
The online survey will help to establish a benchmark of awareness and opinions of Canadians regarding the key terms, conditions, fees, and risks associated with home equity lines of credit (HELOCs), and readvanceable mortgages. It will help identify the types of financial knowledge, and financial behaviours of Canadians with regards to these complex financial products.
Respondents for this survey were selected from among those who have volunteered to participate in online surveys. Because the sample is based on those who initially self-selected to participate, no estimates of sampling error can be calculated. The results of such surveys cannot be described as statistically projectable to the target population.
The purpose of this research is to assess Canadian consumers’ level of awareness of HELOCs and more complex readvanceable mortgage products, as well as identify product features and risks that are not adequately understood.
Specific research objectives include collecting information on:
The Ipsos i-Say panel is the primary source for recruiting respondents. Where necessary, a supplemental sample from third party vendor panels is also used as a source. The Ipsos i-Say online panel is a diversely-sourced and actively maintained panel of over 200,000 Canadian adults. Utilizing this panel allows us to confidently build online samples based on known population characteristics like the ones available through Census data. Invitations to participate in each survey are adjusted to reflect the most recent Current Population Data provided by Statistics Canada.
Online panel participants are recruited and screened using rigorous double and triple opt-in checks[2] to ensure that respondents want to receive contact such as invitations to participate in research surveys. Ipsos i-Say panel Terms and Conditions of Membership details the respondents’ rights to, at any time, for any reason ask to be removed from the panel and stop receiving emails from Ipsos and its clients.
Panel recruitment consists of the following steps:
“wide net”methodologies (e.g., email campaigns, affiliate networks, banner ads, text ads, search engine, co-registration, offline-to-online, specialized websites); and,
It is important to note that any panel – no matter how well recruited – does not enable random selection in the sense that not all members of the public are apt to join a panel. This applies to panels recruited through online approaches as well as panels recruited via traditional telephone Random Digit Dialing.
Rigorous panel maintenance procedures mean only those participants who actively participate in online surveys, at least once every six months, are included. Participants can choose whether to enter a survey or not. While participating in a survey, the respondent can simply exit the survey by closing the survey Internet browser window at any time without submitting their responses if they no longer want to participate.
To ensure a high participation rate from our panelists, the i-Say panel provides a number of innovative incentive programs. Ipsos’ i-Say online panel participants are incentivized through a points program whereby respondents collect points that can be redeemed for rewards of their choice from a collection of products from online retailers such as gift cards and prizes. Each incentive is tailored to the specific requirements of each survey, depending on the length of the survey, the subject matter of the study, and the time required to complete a minimum number of interviews.
A sampling frame was devised to outline a quota structure representative of Canadian adults 25 years and older. All Canadian adults aged 25 years and older were eligible to participate.
The Ipsos i-Say online panel consists of over 200,000 Canadian adults recruited through diverse sources and is constantly refreshed. Background data gathered when respondents join the panel allows us to finely target respondents on the basis of key criteria such as region (national samples are typically divided into over 40 submarkets nationwide ensuring accurate distributions within provinces), age, and gender. The results of quota based sampling against these criteria allow us to construct samples that are reflective of Canadian population characteristics. In this instance, sampling quotas were set according to the respondents’ region, gender, and age to match a target profile based on Census 2016 data. This serves to underpin the representativeness of the survey results.
All sample surveys and polls may be subject to sources of error, including, but not limited to coverage error and measurement error. Traditional margins of error don’t apply to online panel-based samples of general public audiences as the traditional margin of error calculation assumes that the sample measured is a probability sample. As there is no way to measure the probability that any given member of the public may join or be a part of an online panel, these samples are inherently non-probabilistic.
Non-Response Analysis: There exists within the current sample the possibility of non-response bias. In particular, this survey would not include members of the population who do not have access to the Internet or who are not capable of responding to a survey in either English or French.
Extrapolation: The table below compares the unweighted sample to the 2016 Census results by region, age, and gender, as well as the unweighted geographical and demographic distribution of the sample.
| Canadian adults aged 18+ |
Unweighted Sample Size |
Sample Proportions | Census 2016 Proportions |
|---|---|---|---|
| Canada | 4,792 | 100% | - |
| Region | |||
| British Columbia | 641 | 13.4% | 13.66% |
| Alberta | 503 | 10.5% | 11.15% |
| SK/MB | 336 | 7% | 6.44% |
| Ontario | 1879 | 39.2% | 38.20% |
| Quebec | 1077 | 22.5% | 23.63% |
| Newfoundland and Labrador | 76 | 1.6% | 1.56% |
| Prince Edward Island | 17 | 0.4% | 0.41% |
| Nova Scotia | 145 | 3.0% | 2.73% |
| New Brunswick | 118 | 2.5% | 2.22% |
| Sex | |||
| Male | 2004 | 41.8% | 48% |
| Female | 2788 | 58.2% | 52% |
| Age | |||
| 25-34 | 655 | 13.7% | 18.41% |
| 35-44 | 738 | 15.4% | 18.13% |
| 45-54 | 1098 | 22.9% | 20.11% |
| 55-64 | 1194 | 24.9% | 19.61% |
| 65+ | 1107 | 23.1% | 23.74% |
The following table provides the response dispositions and response rate calculation, as per the MRIA’s empirical method of calculating response rates for online surveys.
| Calculation for Data Collection[3] | Total |
|---|---|
| Total Email Invitations Issued | 44,806 |
| Unresolved (U) (no response) | 31,068 |
| In-scope - non-responding (IS) - Qualified respondent break-off (incomplete) | 1,266 |
| In-scope - Responding units (R) | 12,472 |
| Over quota | 7,334 |
| Other disqualified | 346 |
| Completed Interviews | 4,792 |
| Response Rate = R/(U+IS+R) | 28% |
Sampling is carried out via a proprietary sampling application that allows us to construct complex samples based on the target and screening requirements. To develop the survey sample and minimize non-response, we use a large and diversely sourced panel. In addition, we have the capability of broadening the sample frame further through the inclusion of other actively managed panel resources as needed to ensure the sample requirements are met among the hardest-to-reach audiences (such as younger males).
[QUESTIONNAIRE]
[INTRODUCTION]
The Financial Consumer Agency of Canada is conducting this survey on Home Equity Lines of Credit. Ipsos has been hired to administer the survey. Si vous préférez répondre au sondage en français, veuillez cliquez sur FRANÇAIS. The survey takes about 10 minutes to complete and is voluntary and completely confidential. Your answers will remain anonymous. The survey is registered with the Marketing Research and Intelligence Association. Click here if you wish to verify its authenticity.
[Self-reported knowledge level]
[ASK ALL]
[SINGLE CODE]
1. On a scale of 1 to 4, how familiar are you about Home Equity Lines of Credit (HELOCs)? A HELOC is a secured borrowing product that can offer lower interest rates than other forms of borrowing.
[Understanding the product]
[ASK ALL]
[SINGLE CODE PER ATTRIBUTE]
[PROGRAM AS CAROSEL]
2. For each of the following, please indicate if you believe the statement is true or false.
[SCALE]
[RANDOMIZE]
[POP-UP DEFINITION FOR HELOC]
[ASK ALL]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
3. With a HELOC, you can borrow up to a maximum of…
[randomize a) through d)]
[RANDOMIZE]
[ASK ALL]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
4. Under what circumstances can a HELOC interest rate increase?
[Randomize a) through e)]
[RANDOMIZE]
[NO Q5]
[ASK ALL]
[SINGLE CODE]
Q6. Do you own or rent your principal residence?
[IF ‘a’ AT Q6, CONTINUE AT Q7]
[ASK IF OWN PRINCIPAL RESIDENCE ‘a’ AT Q6]
[SINGLE CODE]
7. Does your household have a mortgage?
[ASK IF OWN PRINCIPAL RESIDENCE ‘a’ AT Q6]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
8. Does your household have a HELOC? A HELOC is a borrowing product secured by your home. HELOCs are revolving credit, which means you can borrow money, pay it back, and borrow it again, up to a maximum credit limit.
[ASK IF OWN PRINCIPAL RESIDENCE ‘a’ AT Q6]
[SINGLE CODE]
9. Does your household have a readvanceable mortgage? Readvanceable mortgages usually combine a HELOC and a regular mortgage. Examples of brand names for readvanceable mortgages include Scotiabank’s Scotia Total Equity Plan, CIBC’s Home Power Plan, RBC’s Homeline Plan, BMO’s Howeowner Readiline plan, TD’s Home Equity Flexline, Manulife One, and National Bank’s All-in-One Plan.
[IF Q7 = ‘YES’ AND Q8 = ‘YES’, CONTINUE AT Q10]
[IF Q7 = ‘NO’/’DON’T KNOW’/’PREFER NOT TO ANSWER’ AND Q8 = ‘YES’, CONTINUE AT Q10]
[IF Q7 = ‘NO’/’DON’T KNOW’/’PREFER NOT TO ANSWER’ AND Q8 = ‘NO’/’DON’T KNOW’/’PREFER NOT TO ANSWER’ AND Q9 = ‘NO’/’DON’T KNOW’/’PREFER NOT TO ANSWER’, SKIP TO ‘DEMOGRAPHICS SECTION’]
[How consumers use HELOCs – For HELOC borrowers only [i.e., if Q8 = a)]]
[ASK IF HAS A HELOC ‘a’ AT Q8]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
10. Considering the amount of money you have borrowed on your HELOC, do you feel this amount is:
[ASK IF ANSWERED ‘a’ TO ‘c’, ‘e’ OR ‘f’ AT Q10]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
11. When do you plan to pay off your HELOC?
[ASK IF ANSWERED ‘a’ TO ‘c’, ‘e’ OR ‘f’ AT Q10]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
12. What did you use your HELOC for? Select all that apply.
[RANDOMIZE ORDER]
[ASK IF ANSWERED ‘a’ TO ‘o’ AT Q12. DO NOT ASK FOR ITEMS ‘p’ TO ‘s’ AT Q12]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
13. For each of the following categories, how much did you borrow from your HELOC?
[INSERT ITEMS AS SELECTED AT Q12]
[PROVIDE TEXT BOX FOR EACH CATEGORY]
[ASK IF ANSWERED ‘a’ TO ‘c’, ‘e’ OR ‘f’ AT Q10]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
14. Did you use your HELOC as you intended?
[ASK IF HAS A HELOC ‘a’ AT Q8]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
15. What is the maximum amount you can borrow on your HELOC? If you have more than one HELOC, please indicate the total amount you can borrow on all of them combined.
[ASK IF ANSWERED ‘a’ TO ‘c’, ‘e’ OR ‘f’ AT Q10]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
16. How often do you make payments on your HELOC to pay down the outstanding principal?
[ASK IF ANSWERED ‘a’ TO ‘c’, ‘e’ OR ‘f’ AT Q10]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
17. Please indicate the point at which you may struggle to make your HELOC payments if the payment amount increased above what you are paying today.
[ASK IF ANSWERED ‘a’ TO ‘c’, ‘e’ OR ‘f’ AT Q10]
[SINGLE CODE]
[POP-UP DEFINITION FOR HELOC]
18. Please indicate how often you use your HELOC to meet other loan, credit card, or mortgage payments.
[DEMOGRAPHICS]
[ASK ALL]
[SINGLE CODE]
[EDUCATION]
What is the highest level of formal education that you have completed?
[ASK ALL]
[MULTICODE]
[MOTHER TONGUE]
What is the language you first learned at home as a child and still understand? Select all that apply.
[ASK ALL]
[MULTICODE]
[LANGUAGE SPOKEN AT HOME]
What language do you speak most often at home? Select all that apply.
[ASK ALL]
[SINGLE CODE]
[EMPLOYMENT STATUS]
Which of the following categories best describes your current employment status? Are you…
[ASK ALL]
[SINGLE CODE]
[HOUSEHOLD INCOME]
Which of the following categories best describes your total household income? That is, the total income of all persons in your household combined, before taxes
[CLOSE]
[1] Rim (Random Iterative Method) weighting is used to adjust the sample to ensure it is representative of the target population on two or more characteristics at the same time (i.e. gender, age and region).
[2] The Ipsos online panel is recruited utilizing a double and triple opt-in screening process to ensure maximum return from an engaged and representative audience. After the intital opt-in to the Ipsos online panel, respondents are sent a second and third email to confirm they want to join our panel.
[3] ‘Unresolved (U)’ indicates no response received to email invitation; ‘In-scope - non-responding (IS)’ indicates qualified respondents who started but did not complete the survey (incomplete); ‘In-scope – responding units (R)’ indicates qualified respondents who started the survey but were disqualified as over-quota or disqualified for other reasons. Valid completes are counted as ‘Completed interviews’.