In November, the Canadian Mortgage and Housing Corporation
(CMHC) released the results of their annual in-depth Mortgage Consumer Survey
to highlight the state of homebuying in Canada. This year, the survey was
conducted with 1,385 first-time (47%) and repeat homebuyers (53%). The two
requirements of the participants were that they were the prime decision-makers
in their households and had all undertaken a mortgage transaction in the past
18 months. 18% of those who responded reside in the Prairie Provinces.
survey results highlight that:
- Not surprisingly,
affordability continues to be the most important factor for many when it
comes to buying a home. 80% of buyers said finding a home they could
afford was a necessity.
- The top 3 “must haves” in a
home were price/affordability (80%), number of rooms (73%) and proximity
to public transit (67%).
- There was a decrease in the
percentage of buyers who listed a move-in-ready house as their most
important “want”. 6% of homebuyers were looking for a turnkey house in
2019 compared to 11% in 2018.
- 47% of all homebuyers used
both online and offline resources to gather information about mortgages or
buying a home. The most frequently consulted online sources were the
websites of mortgage brokers
(21% of buyers) and lenders (45%). Many buyers went online to compare
interest rates (87%) or use a mortgage calculator (82%).
- There was an increase in
uncertainty about the homebuying process. Unforeseen housing costs, living
with home expenditures and paying too much for a home were the main causes
of concern of 47% of all homebuyers surveyed.
- “Stress Test” - 65% of homebuyers felt the new rules would help
keep more Canadians from taking on a mortgage they can’t afford. Most of
those buyers impacted by the new rules were still able to buy a home by
making other compromises such as buying a smaller (52%) or less expensive
home (61%), cutting back on other expenses (60%), or dipping deeper into
their savings (59%) to come up with a larger down payment.
- 32% of homebuyers don’t expect
interest rates to rise in the next year, which is up from 20% in 2018.
- Surprisingly, a third (33%)
of all buyers said they did not have a monthly budget in place before they
bought their home.
- A total of 87% of the buyers
surveyed were confident in the long-term financial prospects of
- Nearly half of 2019 buyers
(47%) used a mortgage broker to
negotiate their mortgage. This is a slight increase from 45% in 2018. A
total of 77% of buyers who used a broker said they received advice on
rates, terms and on choosing a mortgage they could afford (75%).
- 83% of people who renewed their mortgage
through a mortgage broker in
2019 were satisfied with their overall experience.
- 85% of people who refinanced
their mortgage thought a mortgage
broker in 2019 were satisfied with their overall experience.
Why you need to work with a
Whether it is buying your first home, your next home, refinancing,
planning renovations or looking at credit repair, you should be working with a mortgage broker. They will provide you
with valuable advice and recommendations for your specific needs. They will also put together a
customized mortgage plan and mortgage management system tailored to you. Remember,
they work for you, not
for any one lender. This opens up the kind of objectivity that allows them to focus
on the product that is the best fit for
you. One Link Mortgage Brokers have the experience, education and expertise
to guide you successfully through the mortgage process.
Do you have questions about getting a mortgage or about your
current mortgage? Contact the trusted Winnipeg Mortgage Brokers at One Link today! We are here to help.