In a study targeting Millenial first-time homebuyers, one big bank appears to be offering the same sort of mortgage advice brokers pride themselves on.
“We’re advocating for a prudent approach to budgeting and always ensuring that the house Canadians do buy – whether they’re Millenials or not – is well within their means to afford,” Pat Giles, Associate Vice President, Real Estate Secured Lending at TD, told MortgeBrokerNews.ca “Clearly, with the survey suggesting Millenials are willing to spend more and not compromise, what we want to make sure is that they’re having that conversation with a mortgage specialist first to make sure they understand the full cost of homeownership and if it fits within their overall budget.”
If that sounds oddly familiar, it’s because it’s the sort of advice you’ve likely given your own clients.
MortgageBrokerNews.ca asked if this was a purposeful approach, noting that brokers are chipping away at bank mortgage share – especially among first-time homebuyers, which the study targets.
“No, I think this is a message to people to say that there are key activities and key considerations that you need to take into account when you’re purchasing a home,” Giles said. “I think there are a number of common mistakes that Canadians tend to make when they’re going out and purchasing a home, especially if it’s a first home.”
The study, which is rife with terms and sayings that often appear in the social media feeds of many Millenials – such as YOLO and “sorry not sorry” – found 48% of those buyers would likely spend more to live close to work compared to 34% of Canadians as a whole.
It also found many Millenials are unlikely to move to a smaller house (38%), sacrifice amenities (81%), compromise on neighbourhood (80%), and give up a car (89%).
According to Giles, the results highlight the importance of budgeting and researching before buying a home.
“Another common mistake is for people to confuse the maximum mortgage they qualify for with their budget, when clearly the cost of home ownership is much higher than just the down payment and the regular mortgage payment,” Giles said. “For us, this is a good opportunity to highlight the importance of doing your research and having a conversation with a mortgage specialist.”
Or, you know, with a mortgage broker.