Buying a home for the first time can be a very daunting task. There are a lot of considerations and it is often extremely unfamiliar territory. However, it seems that when people make the decision to but, it is one that is not one that is taken lightly.
According to the TD Canada Trust First Time Homebuyers Report, first time homebuyers are the least likely to compromise on price with over 50% of respondents stating that price was a non negotiable factor. The report also found that 45% of first time buyers go it alone, 57% being men and 33% women, suggesting that people are confident that they can take on such a big financial commitment independently. It also seems that first time home buyers are more savvy with over a third of new buyers opting to buy homes with rental units, that would help them to pay down their mortgages faster.
Too Good To Be True
It is not all good, the reports also noted that it seems to be getting more difficult for first time buyers to get pre-approved for mortgages (https://www.cnw.ca/en/releases/archive/June2011/15/c6117.html) with 76% of respondents having gotten a pre-approval down from 91% in 2010. There are also implications that first time homebuyers are not doing as much research before buying as they have in the past with only 72% stating that they spoke to a mortgage broker before purchasing, down from 84% last year. In some cases leading to disappointments if buyers are declined after signing purchasing agreements.
So it seems that there is still a very viable market for first time homebuyers and purchasing ones desired home is still attainable, however research is an important part of the buying process including speaking with a certified mortgage professional and ideally seeking a pre-approval on a mortgage in advance.
*The study polled 1,000 Canadians who had purchased houses in the past 24 months or who would be purchasing in the next 24 months.
