CAAMP's spring 2015 survey provides a unique profile of Canadian first-time homebuyers
TORONTO, June 9, 2015 /CNW/ - First-time homebuyers are significant drivers of the current housing market; making up 45 per cent of the 620,000 homes sold in the past 27 months. While 18 per cent of their down payments are still coming from the bank of mom and dad, 53 per cent are using their own or their co-buyers' personal savings. A Profile of Home Buying in Canada, the latest consumer survey report released today by the Canadian Association of Accredited Mortgage Professionals (CAAMP), offers a unique look at first-time buyers in Canada.
"There is intense interest in the Canadian housing market, especially from first-time buyers," said Jim Murphy, AMP, President and CEO of CAAMP. "CAAMP's spring report focuses specifically on this group and we can say with confidence that first-time homebuyers are some of the most engaged, enthusiastic and well-researched groups in the market."
A detailed profile of first-time buyers:
As outlined in the report, first-time buyers on average are able to put $67,000 down as the first payment on their new home. This represents 21 per cent of their average purchase price, freeing them from the additional cost of mortgage insurance.
When asked whether a change of the minimum down payment to 10 per cent would affect their ability to purchase, 27 per cent of first-time buyers say they would probably not be able to afford their home.
Canadian first-time buyers also shared their reasons for purchasing a home. The most popular reason was to stop renting (51 per cent) while many others claimed that a change in personal circumstance (e.g. getting married or moving out of their parents' homes) and a change in their financial situation (e.g. saved enough money) were their primary reasons to purchase. Another interesting reason was buyers' perceptions about the advantages of owning a home, such as providing financial security and the pride of owning a home.
Cracks in Canada's mortgage market
While 47 per cent of first-time buyers are optimistic about the economy in the upcoming 12 months, Will Dunning, Chief Economist, CAAMP, expresses concern. Job creation has slowed over the past two years creating a risk that could have a domino-effect on the entire Canadian economy. Fewer jobs means reduced activity in both the resale market and new housing construction. Housing demand in much of Canada is also slowing, with resale activity moderate and prices flattening (with the exception of major markets like Vancouver and Toronto, whose skyrocketing prices are due to issues of supply and demand).
For a full copy of CAAMP's spring survey report, visit www.caamp.org.
For an infographic depicting Canada's Housing Market 2013-present, please see here.
CAAMP is the national organization representing Canada's mortgage broker channel. With over 11,500 mortgage professionals, its membership is drawn from every province and from all industry sectors. CAAMP is the leading provider of service and advocacy for its members and sets the standard for the Canadian mortgage industry. In 2004, CAAMP established the Accredited Mortgage Professional (AMP) designation to enhance educational and ethical standards for Canada's mortgage professionals.
CAAMP's other primary role is that of consumer advocate. On an ongoing basis CAAMP aims to educate and inform the public about the mortgage industry. Through its extensive membership database, CAAMP provides consumers with access to a cross-country network of the industry's most respected and ethical professionals.
SOURCE Canadian Association of Accredited Mortgage Professionals
Image with caption: "CAAMP Infographic: A Profile of Home Buying in Canada (CNW Group/Canadian Association of Accredited Mortgage Professionals)". Image available at: http://photos.newswire.ca/images/download/20150609_C6498_PHOTO_EN_17764.jpg