TORONTO, ONTARIO — (Marketwired) — 04/09/13 — According to the BMO First-Time Home Buyer-s Report, the average amount Canadians planning to buy their first home in the next five years plan to spend is approximately $300,000, with an average down payment amount of $48,000 (16 per cent).
The report also revealed:
“Buying a home is one of the most important financial decisions one can make. It-s crucial that those planning to enter the market are well prepared – not only to manage their costs, but also to pay off their mortgage as soon as possible,” said Laura Parsons, Mortgage Expert, BMO Bank of Montreal. “Determining what your mortgage payments and overall costs of home ownership will look like, and then living in that financial reality for a year before entering the market, can be an effective strategy.”
Ms. Parsons added that it is encouraging to see that buyers say they are in a position to pay down their mortgage in 20 years or fewer. “Homebuyers can shorten that timeline further by choosing a shorter amortization and taking advantage of accelerated payment options.”
First-Time Buyers and New Mortgage Regulations
According to the report, two-thirds of first-time buyers (66 per cent) say the latest changes to mortgage regulations – which included reducing the maximum amortization for government-insured mortgages to 25 years from 30 years – have not affected their buying timeline, while one-in-five (19 per cent) say they will have to wait longer before buying as a result.
“A shorter amortization is the most responsible approach to home financing; it-s something BMO has been encouraging their customers to consider for years, as it means becoming debt-free sooner,” noted Ms. Parsons.
Additional findings include:
The BMO First Time Home Buyers Report was conducted by Pollara. Survey results cited in this report are from online interviews with a random sample of 2,000 Canadians 18 years of age and over, conducted between February 25 and March 5, 2013. As a guideline, a probability sample of this size would yield results accurate to +/- 2.2 per cent, 19 times out of 20. Data has been weighted by region, gender, and age, based on the most recent Census figures, so that it is representative of all adult Canadians.
(i)Average house price not seasonally adjusted
About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at January 31, 2013, and more than 46,000 employees, BMO Financial Group provides a broad range of personal and commercial banking, wealth management and investment banking products and solutions.
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