What brokers need to know about the next era of homebuyers

What brokers need to know about the next era of homebuyers

What brokers need to know about the next era of homebuyers A recent comprehensive home buying study by Mortgage Professionals Canada points to just how much potential buyers would benefit from using a mortgage broker.

The results found a great number of would-be buyers would benefit from the expertise of a mortgage broker.

A mere 53% are aware of federal down payment changes – essential information for those buying, especially if they plan to purchase in one of Canada’s hottest housing market.

Of those polled, 59% plan to purchase a detached home, 18% have their sights set on a condo, 13% are interested in a townhome, and 8% plan to purchase semi-detached. 2% chose “other” as their planned purchase type.

The survey included 1,009 Canadians aged 18-39 who do not currently own a home, as well as an additional 101 recent homebuyers aged 21+.

Of those non-homeowners, 118 considered themselves imminent buyers, 591 are mid-term buyers and 300 are distant buyers.

According to the survey, the vast majority of young Canadians – 94% -- plan on being homeowners eventually.

Of those, 12% plan to purchase in the next 12 months, 31% plan to buy within the next two years, and 70% plan to achieve the homeownership dream within the next five years. 90% of imminent buyers are already saving for a down payment. The average savings amount among imminent buyers is $37,000.

Unsurprisingly, the study found married Canadians are most likely to plan to buy within the next year (24%) compared to single Canadians (8%) and separated individuals (7%).

Life events also impact homeownership plans. Of those polled, 33% are waiting to start a family before buying, 30% are awaiting a raise, 29% plan to get married first, and 24% would like to move to a new job first.

Of those polled, 72% believe mortgages are good debt. That number jumped to 88% among recent homebuyers. 76% of those polled said real estate is a good investment (90% of recent homebuyers agree), and 58% are optimistic about the economy in the next 12 months (75% among recent homebuyers).

To read the full report, click here.