Canadalend.com, the leading low-cost, private mortgage solution provider in the country, weighs in on a recent report showing that first-time home buyers are a significant driver of the current housing market. Canadalend.com also reacts to a growing number of first-time home buyers using mortgage brokers and credit unions to obtain their mortgages. —
According to a recent report released by the Canadian Association of Accredited Mortgage Professionals (CAAMP), first-time home buyers make up 45% of the 620,000 homes sold in the last 27 months. The study found that most first-time home buyers are between 25 and 34 years of age where half (49%) have household incomes below $80,000. The average price spent on a home by first-time buyers was $308,100; with the most common price range being between $200,000 and $249,000. (Source: Dunning, W., “A Profile of Home Buying in Canada,” caamp.com, June 9, 2015; http://www.canadianmortgagetrends.com/wp-content/uploads/2015/06/Spring-2015-Survey-Report.pdf)
“This data shows that first-time home buyers are showing intense interest in the Canadian housing market,” says Bob Aggarwal, president of Canadalend.com. “And when it comes to financing, a large number of first-time home buyers are turning to mortgage brokers.”
The report also revealed that the largest source for down payments in all buying groups, including first-time owners, is personal savings. When it comes to securing financing, though, there is a divide. Slightly more than half (52%) of mortgages were obtained from banks while 34% came from mortgage brokers, and 10% from credit unions.
“Bank use is the lowest for first-time home buyers, at 47%, and slightly higher for buyers who have purchased more than two homes, at 58%. The use of mortgage brokers is most frequent for first-time buyers, at 39%,” Aggarwal adds. “While the mortgage landscape remains extremely competitive, first-time home buyers are discovering the advantages of using the independent, licensed, mortgage brokers because they can get lower rates than what Canada’s big banks charge,” he concludes. Aggarwal also stresses that it is important for first-time home buyers to contact a mortgage broker to explore their options prior to making a final decision.
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent and licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and addressing financing concerns. To learn more about Canadalend.com, visit the web site at www.Canadalend.com.
Release ID: 85753