Most buyers won't delay despite rate rises
The recent increases in interest rates appear not to have dampened the intentions of most Canadian home buyers.
Just 1 in 4 surveyed for CMHC’s 2018 Prospective Home Buyer Survey said that an interest rate would make them very likely to delay purchasing a new home.
However, the tight inventory in some markets is likely to delay home purchase with more than 40% saying they would wait to find the ideal home and a similar share willing to compromise on the size and location.
All groups of prospective buyers would prefer a move-in-ready home or a newly built one.
While many are not put off, the tighter mortgage regulations and interest rate rises were not a top motivator for their purchase; most respondents cited better accessibility and investment as their top motivators.
“The Survey findings provide insights and valuable information for mortgage professionals about their future clients and their needs,” said Nathalie Fredette, Vice-President, Client Relationship Management. “It brings awareness amongst the industry and contributes to financial literacy by helping Canadians make informed and responsible home buying decisions.”
Most respondents will finance their home purchase with a mortgage – especially first-time buyers – with a downpayment saved 1 to 2 years before purchase.
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