Majority of first-time buyers maxed out budgets to buy a home: CMHC

In a recent survey by the Canada Mortgage Housing Corporation (CMHC), 85% of recent first-time home buyers purchased homes at the top of their price range.

Along with this statistic, 76% noted that they were self-assured that they would be able to make their monthly mortgage payments.

“The federal housing agency, which has been conducting the survey since 1999, says housing affordability continues to be the most important factor cited among first-time and repeat homebuyers, when compared to other factors such as a property's neighbourhood, proximity to work and condition.”

As for concerns, top worries were noted as unforeseen costs, paying too much for a home, and rising interest rates. On the topic of interest rates, the Bank of Canada has raised the key target interest rate 4 times since July 2017 with another anticipated increase during their announcement on October 24^th.

“The CMHC survey found that 80 per cent of homebuyers polled still believe that buying property is a good long-term financial investment. Sixty-six per cent believed their home value would increase within the next 12 months.”

For the full CBC News article, click here.

Wondering about your home budget? Contact your Mortgage Broker for advice.