Learn more about the attitudes and behaviours of Canadians when they are buying a home and are homeowners. Check out CMHC’s 2019 Mortgage Consumer Survey top 10.
1. Price and affordability is a “must-have” say 80% of buyers.
First-time and repeat buyers identified price and affordability as a need when purchasing a home. It’s also a top factor when considering buying a home. For the second consecutive year, about 1/3 of buyers indicated price/affordability as the top factor.
Are you thinking of buying? CMHC can help you determine if you’re financially ready to purchase a home with CMHC’s homebuying guide, checklists and workbook.
2. Almost half – 47% -- of 2019 buyers were first-time homebuyers!
This is a drop from 2018 where 56% of purchasers were first-time homebuyers. The percentage of repeat buyers increased from 44% in 2018 to 53% in 2019 and the majority of mortgage consumers are homeowners going through the renewal process.
Learn more about the First-Time Home Buyer Incentive to get help you get into your first home.
3. 81% of buyers said their current home meets their needs
It’s “home sweet home” for the majority of Canadians – 4 out of 5 homebuyers said their current house meets their needs.
There are a lot of options and choices when it comes to finding the right home. We help Canadians make the best decision by guiding them through the various aspects to consider.
4. 35% of buyers recognize the value of using a real estate agent.
More and more Canadians see value in working with a real estate agent – this is up from 28% in 2018.
Hot Tip: Real estate agents can help recommend other home-buying professionals, including home inspectors, appraisers, builders or contractors, lawyers or notaries, insurance and mortgage brokers.
5. 60% of buyers spent the maximum amount they could afford in 2019.
The “house-rich, cash-poor” approach is losing momentum. We have seen a decrease from 78% to 60% of Canadians spending the maximum amount on their mortgage.
Here are 3 tips to help you determine what price you can afford:
- Compare how much you currently spend on expenses and debt payments with the amount you have saved or invested.
- How much can you afford to spend on housing each month without risking your financial health?
- How much do you need to save to pay for the upfront costs of buying a home?
6. More than half of those surveyed (65%) believe the “stress test” will keep more Canadians from taking on unaffordable mortgages.
The “stress test” has been out for more than a year.
The majority (59%) of homebuyers surveyed were aware of these new rules.
Among all buyers aware and not aware of the new rules, more than 3/4 said the changes had little or no impact on their decision to buy a home – down slightly from 80% in 2018. Those impacted reacted by purchasing a smaller or less expensive home.
7. More than 1/3 of buyers don’t expect interest rates to rise in the next year!
While mortgage rates were up in 2019, so was consumer optimism.
More buyers were betting that interest rates wouldn’t rise again anytime soon. Nearly 1/3 of homebuyers don’t expect interest rates to go up in the next year.
8. 23% of buyers said their current level of debt is higher than they were expecting
Consumer debt continues to be a significant challenge in nearly every part of the country.
The impact of those debts also continued to spill over into the mortgage markets. In total, around 23% of homebuyers in 2019 said their current level of debt is higher than they were expecting. This number is up from 19% of buyers in 2018.
9. 1/3 of buyers didn’t have a monthly budget before buying a home
Preparing a monthly budget — and sticking to it — is one of the keys to successful homeownership.
One third of homebuyers surveyed didn’t have a monthly budget before buying a home but more than two thirds (69%) operated on a monthly budget as a homeowner. The following worksheet can help Canadians develop their budget and meet their financial goals.
10. 87% of buyers feel confident that buying a home is a sound long-term investment
The majority of homebuyers are confident that buying a home is a sound long-term investment.
Before deciding that buying a home is the right decision for you, we encourage all Canadians to carefully examine what type of housing is best for them by asking themselves these 5 questions.