Brokers seize upon apparent contradiction

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A Genworth report highlighting the financial responsibility of first-time buyers appears to contradict its latest move to increase costs for those same buyers.

"The survey shows that today's first-time homebuyers have their eyes wide open, their hands firmly on their pocketbook and are thinking hard before assuming the responsibility of homeownership," said Stuart Levings , president and CEO of Genworth Canada. "This prudence and careful planning should serve Canada's housing market well as responsible first-time buyers grow into responsible long-term owners."

The survey, conducted between February 5 and March 4 and included 1,800 participants, targeted Canadians aged 25-40 who bought their first home within the past 24 months. Some of the key findings include:
  • 25 per cent received financial help from a family member
  • 35 per cent bought on their own
  • 89 per cent have a post-secondary education
  • 57 per cent have not taken on additional debt since the purchase
  • 33 per cent made payments larger than the minimum
Of course, Genworth was the second insurer to raise premiums for buyers putting less than ten per cent down, a large proportion of which will be first-time buyers.

Interestingly, the study also found that brokers or lenders are the number one choice for attaining info prior to buying, with 88 per cent admitting to consulting one.

Meanwhile, 71 per cent sought family advice, 64 per cent spoke to Realtors, and 61 per cent consulted a personal finance website.

"With good incomes, solid jobs and a financial partner with whom to share the responsibility of homeownership, most first-time homebuyers generate a positive profile from the perspective of a mortgage insurer," Levings said.
  • jerryw1005@gmail.com on 2015-04-08 1:20:02 PM

    Finally a positive report on 1st time buyer's financial astuteness!

  • @kiltedbroker on 2015-04-08 4:09:55 PM

    I guess there is a contradiction if you make the assumption that First Time Home Buyers are the ones securing mortgage financing with only 5% down.

    Purchasing a home with 5% down is not limited to first time home buyers. I bet every broker here has helped an existing home owner upgrade to a new property where their client only applied a 5% downpayment despite having enough equity from the sale of their existing to put more down.

    According to the survey, The median home price was $293k, while the median downpayment was $34k, representing 12% of the total home price.

    Quite the interesting stats coming out of this report! Now... if only KMI would link to the report in the article, we would all have easy access to it!

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