What's Happening With Mortgages ?

Daniel Foch, Nick Hill, and Tigran Ter-Mkrtchyan

May 17, 2024

In this episode your hosts Nick and Daniel looks recent survey conducted by CMHC which is full of great data and insights. The state of homebuying in Canada including what buyers and seller are doing, what mortgage products people are taking, renewing vs buying, how much it takes for a down payment and we finish off with home renovations and some amazing green rebates that are available.

Key Take aways:

Despite volatility in the real estate market, Canadians still view real estate as a safe and secure investment, with 38% citing it as a primary reason for buying a home.
There has been a significant increase in mortgage renewals, with 62% of respondents renewing their mortgages compared to 58% in the previous year.
Homeowners are refinancing their mortgages primarily for purposes such as funding home renovations (33%) and reconciling debts (23%)
(Source: 2024 CMHC Mortgage Consumer Survey)
Policy measures, such as the introduction of a 30-year amortization period for first-time home buyers, are influencing buyer behavior and stimulating demand. Understanding the demographic composition of buyers, particularly the dominance of first-time buyers, can inform investment strategies and market positioning to avoid competing directly with this group.
With 55% of buyers in the last year being first-time homebuyers, there's a notable trend of younger individuals entering the housing market.
71% of first-time homebuyers rented before purchasing, with 53% of them renting for less than 5 years.
85% of mortgage consumers searched for at least one piece of information during their most recent mortgage transaction.
81% of consumers were impacted by recent or upcoming interest rate increases, with refinancers being particularly affected.
There's a shift towards longer amortization periods and shorter renewal terms, indicating a focus on reducing mortgage payments and possibly capitalizing on future rate changes.