On November 12, 2015, CMHC released First-Time Homebuyers Survey (http://www.cmhc-schl.gc.ca/en/corp/nero/nere/2015/2015-11-12-0900.cfm) conducted on-line in April 2015 among 788 first-time home buyers from across Canada. All participants had purchased a home for the first time in the previous 12 months. The aim of the survey was to provide mortgage brokers, lenders and other industry professionals with valuable information and useful tools so they can better guide their clients through this major life event, as buying their first home is the single, largest purchase many Canadians have ever made.
A 2015 Survey reveals the following highlights:
1) First-Time Buyers are most influenced by family members and real estate agents. Over a third of First-Time Buyers indicated that family had the most influence during the home buying process (34%), followed by a real estate agent (20%), a mortgage broker (14%) and a lender (11%). Key reasons for family members being viewed as most influential include trustworthiness (71%) and knowledge (55%).
2) First-time homebuyers are two times more likely to use social media to research home buying information than other mortgage consumers.
3) First-Time Buyers need support. First-time buyers are not as confident as repeat buyers. They tended to have a lower understanding of mortgage options and were more likely to find the mortgage process difficult. They were also less certain about where to go if they faced financial trouble.
4) First-Time Buyers have concerns and feel uncertainty. Over 70% of first-time homebuyers received advice regarding mortgage rates, terms, affordability and repayment strategies from their brokers and lenders. Advice on long-term mortgage strategies increased a first-time homebuyers’ level of understanding of options and their level of satisfaction with their mortgage professional by over 80%.
For more information on the First-Time Homebuyers survey and to view the complete survey results visit: www.cmhc.ca/FirstTimeBuyers.