Canadians overall are not influenced by the speculation that the Canadian economy will be negatively affected by the U.S. economic downturn, according to a report released today by the Canadian Association of Accredited Mortgage Professionals (CAAMP).

According to the report, Canadians have shown themselves to be keen observers of the fallout from the subprime mortgage meltdown south of the border. Awareness of the U.S. housing crisis is up from last year, as only 11% of those surveyed said they were not at all aware of the U.S. housing crisis, compared with 22% who were in the dark in the fall of last year.

When it comes to choosing the best time to purchase, the survey results were mixed. One-third of respondents said now was a good time to buy a house, one-third said it was not a good time and the final third were neutral.

“This report indicates mortgage consumers are educated, informed, and attuned to local market conditions,” said Jim Murphy, president and CEO of CAAMP. “Canadians are aware of the strength of the economy and remain confident in our housing and mortgage markets.”

The most positive attitudes are in the Atlantic region, the survey showed, where 49% of residents feel it is a good time to purchase a home. Meanwhile, in western Canada, consumers are making decisions based on rising housing prices and deteriorating affordability. For example, 70% of Saskatchewan residents have reacted to the province’s current hot housing market and felt it was not an appropriate time to purchase a home—which is even higher than the 60% who held this view in the Fall of 2007.

Canadians have yet to react to suggestions that the economy will soon start feeling the impact of higher energy and food prices, and that Ontario is hovering close to a recession, according to the CAAMP survey. “Job creation in Canada is still very strong. Moreover, the housing market doesn’t respond immediately to swings in employment; it takes people time to react to changes in personal circumstance,” said CAAMP chief economist Will Dunning. “Even if recent forecasts are right and the labour market in Canada should start to weaken, momentum from past job creation should result in continued strong housing demand well into 2009,” he added.

Alternative mortgage products, including longer amortization periods, no down-payment mortgages, and interest-only mortgages, continue to grow in popularity in Canada. In 2007, CAAMP found that 37% of recent home purchases had been funded with extended amortization mortgages. In the current survey the most positive opinions are held by people who are most likely to be in a position to use extended amortization products – renters looking to buy. Younger Canadians looking to become first-time home owners are most interested in alternative mortgage products and while cautious and conservative, they are optimistic about the overall future of these options.

“CAAMP members are committed to working with consumers to ensure they have the mortgage solution that is affordable and best suited for their unique needs,” said Andrew Moor, chairman of CAAMP.

In addition, the report says that the arrears rate for residential mortgages remains close to the very low levels that have held since mid-decade, about one quarter of a percentage point. Canada has certainly not experienced the sharp increase in arrears and defaults that has occurred in the United States.

As well, CAAMP reports that the mortgage market and volume of mortgages outstanding continues to expand. More than 11% growth is forecast for 2008 for a total of $913 billion, up from $821.5 billion in 2007. With this growth comes a shift in mortgage lending activity. Residential mortgages are provided by a wide variety of lending institutions, ranging from the chartered banks to credit unions, caisses populaires, and insurance companies, among others. “Mortgage brokers are fast becoming a trusted source and are growing in popularity with first time buyers and increasingly with other consumers,” said Moor. ”More than one-third of mortgage transactions for new homeowners came through brokers.”

The report, “Housing and Mortgage Market Trends in Canada,” was authored Dunning and is based on information gathered by Maritz Research in an online survey conducted in April 2008.