Mortgage Professionals Canada released their Spring 2017 consumer survey report regarding home buying in Canada. This report highlights the trends of the mortgage and attitudes of Canadian consumers. Here are some of the highlights in regards to home buyers in Winnipeg.
Canadians mostly consider a mortgage as “good debt” with recent home buyers being the most positive. 55% of Canadians agree that now is a good time to buy a home.
With the recent changes to the mortgage market and the stress test mortgage, 46% of Canadians were aware of these changes to the mortgage buying rules. The New Generation of home buyers were significantly less aware (29%) of the changes compared to other segments. Recent home buyers had a higher awareness of the changes at 55%. The stress test rate (4.64%) is used to qualify the consumer for a mortgage when the down payment is less than 20% of the purchase price. The rate that you receive on your mortgage is likely lower than 4.64% but this rate is part of the new mortgage buying rules put in place by the Government of Canada to reduce household debt. 48% of potential home buyers expected their down payments to be less than 20% requiring them to qualify under the stress test rate.
Because of the stress test about 20% of potential buyers would not qualify for a mortgage at the rate of 4.64%. An increase of 10% of consumers stated they would rent a part of their home and a 15% increase in consumers planning on buying jointly with someone other than a significant other because of the mortgage rule changes.
For the consumers that would increase their down payment to avoid the stress test 31% would withdraw from RRSPs, 16% would obtain a loan from a financial institution, 43% would delay their purchase and 30% would seek help from family.
Source: Mortgage Professionals Canada