Genworth Canada Releases Results of Homeownership Study
TORONTO, April 8, 2013 /CNW/ - According to a national survey conducted
by Genworth Financial Mortgage Insurance Company Canada (Genworth
Canada), first-time homebuyers are adjusting to the new mortgage
requirements and making informed choices about homeownership.
The annual poll, completed in conjunction with the Canadian Association
of Credit Counselling Services (CACCS), asked 1,514 Canadians questions
about their financial well-being and preparedness. The 2013 survey
revealed that there was a significant rise in the number of recent
first-time buyers who say they put down more than 20% on their homes
(56% vs. 36% in the 2012 survey). In fact, the number of people that
said it is getting harder to save for that down payment is on the
decline (50% vs. 55% in 2012) with more first-time buyers finding it
easier to save money (9%, up from 5% in 2012). In addition, only 17 per
cent of respondents thought it was a good time to buy, suggesting that
low interest rates alone are not enough to entice Canadians to purchase
"Canadians entering the real estate market are making financially astute
choices by saving longer and putting down larger deposits on their
homes," said Brian Hurley, Chairman and CEO of Genworth Canada. "They
continue to value homeownership and are being responsible about the way
they enter into mortgage debt. This trend bodes well for a
soft-landing of the housing market."
Among first-time homebuyers, the proportion saving for less than two
years has decreased by nearly 30%, while the proportion saving for more
than five years rose by more than 50%. This appears to indicate that
fewer first-time homebuyers feel a sense of urgency about entering the
real estate market, which is consistent with the fact that fewer expect
house prices to rise in the next twelve months.
"There is still a strong need for Canadians to have a better grasp on
their financial situation," said Henrietta Ross, CEO of CACCS. "More
than 40% don't think their credit rating reflects them or don't know
what their credit rating is. Counselling could help ensure they are
financially prepared to enter and maintain substantial investments,
such as homeownership."
The interviews were conducted by Environics Research Group using an
online methodology during the week of February 11-19, 2013.
David MacDonald, Vice President at Environics Research Group, will be
presenting the results of the survey at Genworth Canada's Homeownership
Education Week seminar for mortgage industry professionals April 9.
MacDonald will be joined by Henrietta Ross, CEO of CACCS, Stuart
Levings, COO of Genworth Canada, and Phil Soper of Royal LePage in a
panel discussion following the presentation of the survey results. To
register for the live webcast of the seminar or find out more about
Homeownership Education Week visit www.genworth.ca.
About Genworth Canada
Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth
Financial Mortgage Insurance Company Canada (Genworth Canada), is the
largest private residential mortgage insurer in Canada. The Company
provides mortgage default insurance to Canadian residential mortgage
lenders, making homeownership more accessible to first-time homebuyers.
Genworth Canada differentiates itself through superior customer
service, a robust risk management framework and innovative processing
technology. For almost two decades, Genworth Canada has supported the
housing market by providing thought leadership and a focus on the
safety and soundness of the mortgage finance system. As at December
31, 2012, Genworth Canada had $5.7 billion total assets and $3.0
billion shareholders' equity. Find out more at www.genworth.ca.
About Canadian Association of Credit Counselling Services:
The Canadian Association of Credit Counselling Services (CACCS)
represents a Canada-wide network of accredited, not-for-profit agencies
and affiliates offering preventative education and confidential
services to clients experiencing financial difficulties. With a focus
on financial counselling education, accreditation of agencies and
certification of Financial Counsellors, CACCS is also committed to
national research and policy initiatives concerning personal finance
and industry advocacy.
To find a certified Credit Counsellor and qualified Financial Coach at
an accredited Member Agency, call the CACCS central referral service at
1-800-263-0260 or visit www.caccs.ca for more information.
SOURCE: Genworth Canada
For further information:
For additional information or to arrange interviews, please contact:
905.287.5520 or Lisa.Azzuolo@genworth.com