TORONTO, April 29 /CNW/ - A BMO Bank of Montreal survey revealed significant differences between men and women when it comes to the home buying process, including how much they are willing to pay and the type of mortgage they choose.
The survey found that among future first time home owners(1):
- Men (44 per cent) are more likely than women (28 per cent) to
consider a fixed rate mortgage
- 16 per cent of men, compared to only 8 per cent of women reported
that they have been caught up in a bidding war
- 70 per cent of men say they are more likely to consider offering more
for a home based on its location, compared to 57 per cent of women
"BMO advises Canadians who are looking to purchase a home to stress-test their financial budget now based on a higher interest rate. While men and women may not agree on all decisions related to buying a home, both need to ensure they are adequately prepared now that interest rates are going up," said Jane Yuen, Senior Manager of Mortgages, BMO Bank of Montreal. "By locking in with BMO's low rate five-year fixed mortgage with a maximum 25 year amortization, you will save thousands of dollars in interest and be mortgage free a decade sooner."
The difference of opinion between the sexes is likely even more pronounced this spring given how active the housing market has been. "Rising home prices have been driven by a combination of strong demand coming out of the recession, and very tight supply during the past year. As a result, we have seen many multiple-offer situations in prime urban neighbourhoods across Canada," said Doug Porter, Deputy Chief Economist, BMO Capital Markets.
Other key survey findings include:
- When identifying what makes future first time home buyers most
anxious about the home buying process, men and women both agree
saving for the down payment (50 per cent male, 56 per cent female).
However, men and women significantly differ on other aspects of the
home buying process:
- Women are significantly more likely to report feeling overwhelmed
by the choices and decisions to make (44 per cent vs. 28 per
- Men are more likely than women to agree that the media's talk of
rising interest rates has influenced their decision to enter the
housing market (39 per cent vs. 26 per cent).
"Average home prices in Canada's major markets have risen more than 20 per cent since bottoming in January 2009. A number of factors including higher mortgage rates, stricter mortgage rules, and the HST in Ontario and B.C., should cool demand in the coming months and, if met with a continued strong supply response, should ease price pressure," added Porter.
"Especially in today's heated market, it's easy to get caught up in the emotions of a home purchase," added Yuen. "It's hard to walk away from a home you believe is 'the one' but homebuyers need to avoid getting caught in a bidding war that pushes their mortgage payments outside their comfort zone. In short, you need to know your limit and stay within it."
The Harris/Decima online poll was conducted from February 16 to 22, 2010 and is based on a sample of 1,000 Canadians between the ages of 25-45 years, who are either current home owners (who currently have a mortgage on their home and needed one when they purchased their home) or are planning on purchasing their first home in the next 12 months, and at least share in their household's financial decisions.
(1) For the purpose of this research, "future first time home owners" are Canadians, between the ages of 25-45 years who are planning the purchase of their first home in the next months and at least share in their household's financial decisions.
SOURCE BMO Financial Group
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