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