Canadian homebuyers are confident that there are long term benefits in buying a home, according to a national survey commissioned by Genworth Canada.
Canadians are currently working longer and harder to save for their down payments, and remain optimistic about the market, the survey revealed. This annual survey polled 1,507 Canadians. It was completed in conjunction with the Canadian Association of Credit Counselling Services.
Canadian Homebuyers Confident in Market
More Canadians are considering buying a home, the survey revealed. 17 per cent of all Canadians surveyed think now is a good time to buy, and for first time buyers this figure is even higher.
This could be due to confidence in the growth of the real estate market. 64 per cent of Canadians surveyed believe that house prices will continue to rise over the next year.
Canadians: Fiscally Responsible
Canadian homebuyers are in a good position to buy. The survey revealed that 48 per cent believe they are in good financial shape—up from the 40 per cent of the 2012 survey.
Canadians are also planning how to save for the down payment. 50 per cent of Canadians surveyed expect to have a down payment in 1 or 2 years. 38 per cent of respondents are able to pay their bills and save money, which is up from 31 per cent in 2012. And 67 per cent plan to pay off their mortgage faster.
Investors Fear Downturn
Though homebuyers are confident, some investors fear that the new CMHC premium raise on default insurance will actually hurt the market. This hike averages at 15 per cent for all loan-to-value ranges.
Investor Sahil Jaggi believes this mortgage insurance hike will hit investors. Jaggi, who was interviewed by Canadian Real Estate Wealth, thinks not all property owners should be lumped together. Jaggi thinks the CMHC should be more lenient towards investors with decent incomes and with over 50 per cent in most of their properties.
Positive Trend in Homeownership
But 9 out of 10 Canadians believe that owning their own home will give them a greater sense of emotional wellbeing. They would rather own than rent.
The Chief Operating Officer of Genworth Canada, Stuart Levings, explains the positive trends.
“With a stable economy and real estate market, Canadians appear to have more confidence in the value of homeownership and see their goals of homeownership and financial well-being as more achievable.”
Sources used in researching this article include Genworth Canada: The Value of homeownership Is Still Worth The Wait and Canadian Real Estate Wealth: CMHC increase is unfair, say investors