Newcomer First-Time Home Buying ExperienceQ U A L I T A T I V E R E S E A R C H R E S U L T S
Type of Home
Resources Used
Budget and A� ordability
Advice Gathered
Lenders vs. Brokers
Buying Reasons
MULTIPLE WEBSITESListings, Lender, Broker
websites visited even after working with professional
MORTGAGE CALCULATORS
Most often used online tool
Not speci� cally looking to buy within their own
ethno-cultural community
NoteworthyFew noted low interest rate environment as a primary motivator for
buying a home
Important step towards “getting settled” in new country or city
Noteworthy
Newcomers used social media
to access real estate and listings information, and were hesitant to share personal
details
Noteworthy
“Credit history” and “closing costs” were
new concepts to some newcomer � rst-time buyers
Noteworthy
Low desire for documentation in mother tongue or professional from same cultural background
Noteworthy
The ability to compare interest rates was a compelling proposition and many wished they had the opportunity
to compare more
Noteworthy
Stop paying rent Desire to build equity as a long term investment Felt � nancially established to carry a mortgage Needed space for a growing family
Newcomers met with Brokers on recommendation from a Real Estate Agent or Family/Friend
Newcomers thought dealing with their own bank would simplify the mortgage process
Mortgage ProfessionalsReal Estate Agents were likely to be consulted � rst
Family & FriendsBoth were important resources, and family was strongly relied upon
Single detached homes
Close in proximity to work/transit
Safety was a strong consideration
Lender
Broker
Homeownership rates rise as time in Canada increased
Primary reasons cited...
The � rst mortgage professional contacted was considered the most valuable
followed by
Preferred characteristics identi� ed...
Over 250,000 new immigrants to Canada annually with over half as economic immigrants
100%
90%
80%
70%
60%
50%
40%
30%less than 5 years
11-15 yearsYears since landed in Canada
6-10 years 16-20 years 21+ years 20142010 20122008 20132009 201120072006
165,088160,792186,915
131,244148,154156,114149,066 153,489138,252
260,404257,903280,687
236,753259,023248,747247,244 252,170251,640
Total Immigrants Economic Immigrants
Primary focus was to accumulate down payment
Not well known or understood by newcomers
Newcomers often did not set an operating budget, which led to surprises after moving in
Budgeting
Mortgage Loan Insurance
Operating Budget
GOING ONLINEMost common step in the home buying process
Source: Citizenship & Immigration CanadaSource: 2014 CMHC Canadian Housing Observer
cmhc.ca/surveys
General Overview
Motivations and Desires
Home Buying Process
Mortgage Process