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2018 CMHC Prospective Home Buyers Survey
In October 2017, CMHC surveyed 2,507 prospective home buyers on-line. Respondents were all prime household decision-makers who intend to purchase a new home within the next two years, including approximately 1,500 First-Time Buyers, 500 current owners, and 500 previous owners. The survey results highlight that: First-Time Buyers and Previous Owners share the same top motivator to purchase a home: they want to stop renting. Improved accessibility (physical obstacles and barriers) and investment opportunity were also noted as top motivators across all groups. Changes to mortgage regulations and concerns about possible future interest rate increases were not among the top motivators. Over four-in-ten First-Time Buyers and Previous Owners say they would delay their home purchase if they were not able to find their ideal home, with a fairly similar proportion saying they would be willing to compromise on the size of the home and location. The majority of future home buyers intend to obtain a mortgage to finance their home purchase, with First-Time Buyers showing higher incidence compared to Previous Owners and Current Owners. Across all future home buyers groups, more than six-in-ten say they are likely to have a financial buffer in case their expenses change in the future. Furthermore, the majority of future home buyers, especially Current Owners, agree that they feel confident they have the necessary tools and information to manage their mortgage and debt load. Among all groups, the two most common actions completed one to two years prior to the purchase of a home were saving for a down payment and determining what type of home to buy. On the other hand, in the last three months before purchasing, about two-in ten of prospective buyers pre-qualify for a mortgage. About one-in-four prospective home buyers stated that they would be very likely to consider delaying their purchase in the event of an increase in interest rates.
Time for a mortgage review
The start of a new year almost always inspires individuals to commit to resolutions that will improve the quality of life. And in the spirit of the new year, new you mantra, a mortgage review reminder is aptly timed. Many mortgage holders underestimate the value of proactively reviewing their finances and in particular their mortgages. Yet just like annual health checkups, annual mortgage reviews are every bit as important as reviews can sometimes result in hundreds or even thousands of dollars in savings. They also are very useful when trying to determine if the mortgage plan still fits ones circumstances. Reviewing a mortgage allows the holder to look at several factors that include reviewing the mortgage term, the monthly payments and even the insurance coverage on the loan. The review can include looking at individual credit and the value of your home. As a mortgage broker, I can discuss the impacts on your long term finances if we create a plan that that could potentially include making increased monthly payments or contributing a lump sum. With the new year underway and Canadians buying power being impacted due to new stress test rules that came into effect as of January 1, home owners and buyers need to seek the advice of a licensed mortgage professionals, such as myself. I can expedite the review process with a simple check of current rates and fees for a refinance and the terms of the current loan. Contact me today to start the conversation and ultimately find the best mortgage for your needs.