What are Your Expectations as a Future Homebuyer in Brampton?
Roughly one in four prospective Canadian home buyers would very likely consider delaying their purchase in the event of an increase in interest rates, according to a new survey released on Thursday.
Canada Mortgage and Housing Corporation (CMHC) released the first of its kind 2018 Prospective Home Buyer Survey.
It explores the dynamics of home buying intentions for three groups of future homebuyers, including first-time buyers, previous owners, and current owners, and provides a comprehensive review of overall awareness and understanding of the home buying process.
“The survey findings provide insights and valuable information for mortgage professionals about their future clients and their needs,” said vice-president of client relationship management Nathalie Fredette.
“It brings awareness amongst the industry and contributes to financial literacy by helping Canadians make informed and responsible home buying decisions.”
Top motivators for buying a home across all groups include improved accessibility (less physical obstacles and barriers) and investment opportunity.
Changes to mortgage regulations and concerns about possible future interest rate increases weren’t among the top motivators for prospective home buyers in 2017.
As for housing expectations, at least four in 10 first-time buyers and previous owners say they would delay their home purchase if they weren’t able to find their ideal home, with a fairly similar proportion saying they’d be willing to compromise on the size of the home and location.
An existing move-in-ready home is the top choice for all groups of prospective home buyers, followed by a newly constructed home, noted by approximately one-fifth of first-time buyers and previous owners.
Among all groups, the two most common actions completed one to two years prior to the purchase of a home are saving for a down payment and determining what type of home to buy.
Roughly one in four prospective home buyers stated they would be very likely to consider delaying their purchase in the event of an increase in interest rates.
The majority of future home buyers, though, intend to obtain a mortgage to finance their home purchase, with first-time buyers showing higher incidence compared to previous owners and current owners.
Across all groups of future home buyers, more than six in 10 say they’re likely to have a financial buffer in case their expenses change in the future.