What do Canadians Consider Before Getting a Mortgage?
Tags: What do Canadians Consider Before Getting a Mortgage?
The Canadian Real Estate Market has remained strong and highly competitive into 2020. This continued
strength and competition has caused some uncertainty and speculation in the media that things could
change. Despite this, many Canadians still believe that homeownership plays an important part to their
financial future.
A new report from Mortgage Professionals Canada titled the Annual State of the Residential Mortgage
Market in Canada discusses the main things Canadian’s consider when buying a home. It says despite
the narrative in higher-priced housing markets that the primary driver for homebuying is the fear of
missing out, the Canadians surveyed in these regions ranked the prestige of homeownership last on a list
of 18 considerations.
Paul Taylor, CEO of Mortgage Professionals Canada, says “Encouragingly, the top four
considerations for these homebuyers were monthly carrying costs, down payment savings, the potential
change in house prices (up or down), and potential future earnings.”
According to the findings of the report, the number one consideration for homebuyers is monthly housing
related costs, which include things like mortgage payment, hydro, heat, and insurance payments. This was
followed by the amount of time it will take to pay off the mortgage, the amount your income might
increase or decrease to in the future, and savings for a downpayment were the top four
considerations.
The factors that are expected to receive the least consideration for homebuyers are the prestige of
homeownership, future child care costs, the possibility of having to move, and future transportation
costs. Looking at the 18 factors as barriers, the greatest issue is expectations about income growth,
followed by the amount of time it will take to pay off the mortgage, the amounts of principal to be
repaid each year, and the total monthly costs of housing.