What Newcomer First-Time Buyers Should Know
Navigating the real estate market for the first time can be tricky, but if you’re also new to the country, there can be an additional learning curve. To better understand the areas where newcomers need the most information, CMHC recently released their 2016 Newcomer First-Time Home Buying Experience Qualitative Study.
Based on the results of this research, here’s the big things that newcomer first-time buyers should know and the most notable trends:
- Low interest rates aren’t a huge motivator: few noted low interest rates as their main reason for wanting to buy. But, it’s important to note that mortgage rates are still historically low, but are expected to rise in the somewhat near future. Notable: building financial stability and the need to support growing families was the top motivators for home buying.
- Online resources are the most popular choice: the main sources of research and information during the home buying process for newcomers has been online sources, especially social media sites and real estate websites. Here’s some important places to look:
- Budgeting was a top concern: as well as coming up with the money for a down payment. My blog has a library of resources and how-tos on not only making a budget, but creative ideas for coming up with down payments as well.
- Mortgage loan insurance is an option: many newcomers had little to no understanding of what mortgage loan insurance is. In Canada, it’s law that anyone purchasing a home with less than 20% down payment must purchase mortgage insurance. The reasoning for this is that those who have 20% or more are considered to be low-risk mortgage borrowers, and therefore insurance is not required. Mortgage insurance is available via CMHC or Genworth Financial.
If you have questions about home buying, please feel free to contact me!
