New Report Investigates How Canadians Perceive Purchasing Their First Homes
TORONTO, Aug. 28, 2019 /CNW/ - Home Buying in 2019 Is Hard Work is a new report issued today by Mortgage Professionals Canada (MPC). This report investigates the thinking and weighted considerations of first-time home buyers in Canada in light of recent economic conditions, and decisions by policymakers.
The report concentrates on first-time home buying. Survey responses were collected in July from almost 2,000 Canadians aged 23 to 54. Respondents were primarily renters or owners of their current homes. To help determine the average stress level associated with home buying, the survey asked respondents to compare their buying considerations to other big-life decisions, including getting married, having children, or moving from their hometown.
Recent mortgage qualifications rules, and specifically the stress tests, are making home buying more difficult: The stress test rate of 5.19% remains high, especially when considering how much lower available mortgage rates now are; would-be first-time buyers are disproportionately affected by this increasing gap.
The report also examines Canadians' reaction to the newly announced First-Time Home Buyers Incentive, and compares responses to sentiments around a reintroduction of a 30-year amortization.
"Home buying is hard work. From past surveys we have done, we've learned that Canadians are generally very prudent and considerate with their financial decisions, but wanted to understand first-time home buying considerations in greater detail," said Paul Taylor, President and CEO of Mortgage Professionals Canada. "This report describes sentiment toward current mortgage qualification rules and the recently announced First-Time Home Buyers Incentive plan. While the new incentive offering will work well for some, we feel that a policy discussion regarding stress test qualification reductions is long overdue. Policymakers can and should do more to assist young and aspiring middle-class Canadians achieve home ownership."
"Housing markets across Canada are significantly under performing given the positive employment numbers and population growth Canada has experienced," said Will Dunning, MPC's Chief Economist and author of the report. "Our survey respondents reinforce our belief that Canadians are making sound home purchasing decisions for their economic well-being. As MPC has stated for many months, with many major banks now agreeing, adjustments to current mortgage qualification rules are needed."
The report is available for download here.
Mortgage Professionals Canada is the national mortgage industry association representing 11,000 individuals and 1,000 companies, including mortgage brokerages, lenders, insurers and industry service providers. Its members make up the largest and most respected network of mortgage professionals in the country whose interests are represented to government, regulators, media and consumers. Together with its members, the association is dedicated to maintaining a high standard of industry ethics, consumer protection and best practices.
The mortgage broker channel originates over 35% of all mortgages in Canada and 55% of mortgages for first-time homebuyers, representing approximately $80 billion dollars in annual economic activity. With this diverse and strong membership, Mortgage Professionals Canada is uniquely positioned to speak to issues impacting all aspects of the mortgage origination process.
The report's full URL is https://mortgageproscan.ca/docs/default-source/consumer-reports/home-buying-in-2019_mid-year-report.pdf
SOURCE Mortgage Professionals Canada
Paul Taylor, Mortgage Professionals Canada, 416-644-5465, [email protected]; Christian von Donat, Impact Public Affairs, 613-408-0498, [email protected]
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