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.  

The 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 homeownership.
• 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.

Source: CMHC

Why you need to work with a Mortgage Broker

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.