A snapshot of first-time homebuyers in Canada
Genworth Financial recently polled 1,800 first-time homebuyers in Canada to get a feel for what that demographic looks like this year, and with 30-35% of homes being purchased by first-timers, it’s important to understand their stake in the marketplace. Here’s a few of the key trends in the report:
- The average purchase price has increased, with an average of $293,000 being spent Canada-wide
- 63% of first-time buyers purchased mortgage loan insurance: this means that majority of first-time buyers in Canada are putting less than a 20% down payment. It’s important to note that in going this route, CMHC and Genworth both raised their insurance premiums this past week (read more here), though the change won’t make a significant impact for most in the numbers.
- Just 26% of first-time buyers made a lump sum pre-payment on their loan in the last year
- 62% of first-time buyers purchased with a partner or spouse
- 59% of first-time buyers plan to have children within the next five years: only 17% purchased condos as well, which means majority of first-time buyers are taking the plunge to larger home options right away with their first purchase. Planning for a family is clearly setting a trend for the types of homes that first-timers buy. On this note as well, 16% of those polled in this survey don’t plan to have kids, which coincides with the 17% of condo buyers.
- 80% of first-time buyers chose fixed mortgage rates
- 80% of first-time buyers chose a resale home
- 20% of first-time buyers went for new construction
Some other interesting finds were that over 60% of first-time homebuyers are paying off their credit cards in full each month, and only 39% of respondents are somewhat concerned about making end’s meet on a monthly basis. This suggests that first-time buyers are literate about budgeting and saving for homeownership, which is great news.
If you’re a first-time home buyer or just have questions about this new information, please feel free to contact me. You can also reach me on Twitter anytime.
