A new report was released in 2020, and we thought you’d like to know more about it!
Genworth Canada’s 2019 First-time Homeownership Study provides some wonderful insights into the mindsets and the behaviours of first-time buyers.
Here are some notable findings worth mentioning from the report:
60% of millenials have now become homeowners. The homeownership rate across Canada is 68%, according to the 2016 Census.
25% of first-time buyers were immigrants, which was an increase from 19% in 2017. In Vancouver and Toronto, immigrants represented 43% and 42% of first-time buyers, respectively.
The main motivation of first-time buyers was a strong belief that owning a home is a wise financial decision (50%).
First-time buyers are also very prepared when it comes to finances. 76% have a long-term financial plan for retirement, compared to 58% of the general population. 83% report feeling confident in their long-term financial health.
Affordability is a challenge for all buyers, with 95% of the first-time buyers in this study saying it’s their #1 concern.
48% of first-time buyers would prefer a home closer to work, compared to 32% who said they would prefer a less expensive home with a longer commute.
21% of first-time buyers purchase condos. This is up 5% from the 2017 study.
37% of first-time buyers received a gift or a “loan” from the Bank of Mom & Dad, up from 32% in 2017. Out of those recipients, 50% said they would have delayed buying a home without the gift, 32% would have purchased with a smaller downpayment, and 15% would have looked for a smaller home.
The big picture seems to be that first-time buyers are well-educated, employed and gaining income and equity each year.
Along with careful planning and a bit of help from family, first-time buyers are making informed and responsible choices in the Canadian marketplace.