2014 CMHC First-Time Homebuyers Survey

Katherine Martin • December 14, 2014

In May 2014, CMHC completed an on-line survey of 860 First-Time Buyers from across Canada. All respondents had undertaken a mortgage transaction in the past 12 months and all were one of the prime decision-makers within their household for matters relating to housing finance and mortgages.

 

First-Time Buyers and Technology

The majority of First-Time Buyers (84%) went online when gathering information about mortgage options and features (76% for other mortgage consumers). Among these, more than half (55%) went to lender sites and one-third went to broker sites. Compared to other mortgage consumers, First-Time Buyers showed a higher likelihood of visiting a broker site (33% vs. 24%). About one-in-five (22%) reported visiting web sites of both lenders and brokers.

Overall, First-Time Buyers were much more active online compared to other mortgage consumers. First-Time Buyers who went online undertook a variety of activities with 80% using a mortgage calculator (72 % for other mortgage consumers), 63% completing a financial self assessment (43% for other mortgage consumers), 42% either got pre-approved or filled an online form (24% and 23% respectively for other mortgage consumers), and 20% engaged in an online conversation (11% for other mortgage consumers).

The use of mobile devices to access mortgage related information was more prominent among First-Time Buyers (23% vs. 14% among other mortgage consumers). However, desktops are still preferred by almost nine-in-ten First-Time Buyers.

The use of social media as a tool when looking for a mortgage is increasing and was much more prevalent among First-Time Buyers.

In 2014, 40% of First-Time Buyers going online looked to social media when researching their mortgage options.

This up from 28% one year ago, and compares to only 22% among other mortgage consumers.

Among First-Time Buyers using social media, 58% used Facebook, and 38% used either online forums or blogs. Overall, online forums and blogs were found to be the most useful social media platforms for mortgage related information. Half of First-Time Buyers using online forums and 44% using blogs rated the information obtained through these platforms as “very useful.”

Social media is starting to play a role in how First-Time Buyers interact online. About one-in-five using social media (21%) posted a review or rating of either a broker or lender and 30% used social media to find a referral to use a specific professional (i.e. broker, lender, real estate agent or other professional).

Homebuying Process

During the home buying process First-Time Buyers interacted with a variety of individuals. Most notably, about three-quarters were in contact with a family member (79%), a mortgage lender (73%), or a real estate agent (72%). Slightly more than half (55%) reported interacting with a mortgage broker.

As expected, family members were greatly relied upon during the homebuying process. About half (53%) reported that family members “greatly influenced” their homebuying decisions. This compares to 37% for real estate agents, 36% for brokers, and 28% for lenders.

In terms of the individual who had most influence on the buying decision, 38% of First-Time Buyers mentioned a family member, 17% a real estate agent, 14% a mortgage lender, and 10% a mortgage broker.
Overall, 60% of First-Time Buyers mentioned that they had concerns during the home buying process (compared to 46% for Repeat Buyers). The nature of the concerns or uncertainty stems mostly from unforeseen costs. In fact, 40% of First-Time Buyers actually incurred unexpected expenses during the homebuying process. Among those incurring unforeseen costs, the most common were adjustments (40%), lawyer fees (36%) and land transfer taxes (30%).

First-Time Buyers’ Experience with Lenders & Mortgage Brokers

Over half (54%) of First-Time Buyers reported arranging their mortgage with the financial institution they were dealing with the most. In comparison, among Repeat Buyers, 67% were loyal to their existing lender when arranging their mortgage.

Approximately four-in-ten (37%) of First-Time Buyers received a recommendation to use a specific mortgage professional. These recommendations came primarily from family members and real estate agents. Among those receiving a recommendation to use a specific lender, 37% came from a family member and 22% from a real estate agent. In terms of brokers, 33% of recommendations came from a family member and 30% came from a real estate agent.

In the 2014 survey, almost half (48%) of First-Time Buyers arranged their mortgage through a mortgage broker…

compared to 40% among Repeat Buyers.

Among First-Time Buyers using a broker, 50% reported obtaining a mortgage with a lender other than the financial institution they were dealing with the most at the time. This compares to only 27% among First-Time Buyers dealing directly with their mortgage lender. Therefore, First-Time Buyers using a broker were 85% more likely switch financial institutions when getting a mortgage.

When it comes to providing advice or guidance, First-Time Buyers were equally well served by brokers and lenders. About 70% or more reported receiving advice on how much mortgage they could afford, specifics regarding fixed versus variable rates and mortgage terms and conditions, or advice on long-term mortgage strategies.

Although most First-Time Buyers received advice from their mortgage professional when arranging their mortgage, fewer than half received any form of post-transaction follow-up contact. In fact, following their mortgage transaction, only 41% of those who used a lender were contacted and 49% of those who used a broker were contacted.

In most cases the purpose of the post-transaction follow-up by mortgage professionals was simply to thank the customer, mentioned by 61% of those who were contacted by their lender and by 67% of those who were contacted by their broker. Generally, the post transaction contact occurred within one week to one month after the mortgage transaction was completed (86% for broker clients and 75% for lender clients).

Most First-Time Buyers were satisfied with their mortgage professional with 80% indicating that they were satisfied with their lender and 70% with their broker. However, broker clients tended to show a greater likelihood of using their broker again in the future. Almost four-in-ten (38%) “totally agreed” they would use their broker again in the future. This compares to three-in-ten (31%) of lender clients indicating they would use their lender for their next mortgage transaction.

Attitudes of First-Time Buyers

In terms of assessing whether they got the best mortgage deal for their needs, First-Time Buyers were not as confident as Repeat Buyers. Only 33% of First-Time Buyers “totally agreed” that they got the best mortgage deal for their needs, compared to 53% for Repeat Buyers.

First-Time Buyers also tended to have a lower understanding of mortgage options and were more likely to find the mortgage process difficult. Nearly four-in-ten (37%) of First-Time Buyers “totally agreed” they had a good understanding of the mortgage options available to them. This compares to 59% among Repeat Buyers. Similarly, only 28% of First-Time Buyers “totally agreed” that the process of getting a mortgage was easy and straight forward (44% for Repeat Buyers).

Providing advice on long-term mortgage/financial strategies can be of great help to First-Time Buyers. Providing such advice can also increase the likelihood of repeat business by 86%. More specifically, 41% of First-Time Buyers receiving advice on long-term mortgage strategies “totally agreed” that they would likely use the same mortgage professional to arrange their next mortgage transaction, compared to only 22% among those not receiving this kind of advice.

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


RECENT POSTS

RRSP Home Buyers’ Plan Explained: A Smart Way to Buy Your First Home

By Katherine Martin • August 5, 2026
Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.

Employment and Mortgage Qualification: What Lenders Look For

By Katherine Martin • July 29, 2026
When you apply for a mortgage, your employment history and status carry a lot of weight. Even if you feel secure in your job, lenders need proof that your income is reliable and will continue. To them, your employment status is one of the strongest indicators of whether you can make your mortgage payments long term. Here’s how lenders typically view different employment situations: Permanent Employment This is the gold standard. Once you’ve passed any probationary period and hold permanent status, lenders see you as a lower risk. It shows that your employer is committed to you, and your income is steady. Probationary Periods If you’re still on probation—usually 3 to 6 months, though sometimes longer—lenders may hesitate. That’s because your employer can end your contract without cause during this period. Once probation is over, you’re considered more secure. That said, context matters. If you’ve worked with the same company for years as a contractor and just transitioned into full-time employment, lenders may accept a letter from your employer confirming that probation is waived. Documentation is key here. Parental Leave Being on or about to take parental leave doesn’t mean you can’t qualify for a mortgage. As long as you have a letter from your employer guaranteeing your position and return-to-work date, lenders can use your regular salary—not your leave income—when assessing your application. Term Contracts This is one of the trickiest categories. Even highly skilled professionals with strong incomes can face challenges here. A term contract has a start and end date, which makes lenders question the stability of your future income. To use term-contract income, lenders generally want to see at least two years of history, or proof that your contract has already been renewed. The more evidence you can show of consistent employment, the stronger your case will be. The Bottom Line If you’re planning to apply for a mortgage, it’s important to understand how your employment status could affect your approval. Whether you’re starting a new job, coming back from leave, or working under contract, lenders want documentation that proves your income is reliable. 📞 If you’ve recently changed jobs or are planning a career shift, let’s connect. I can help you prepare your file so you qualify with confidence and avoid surprises in the approval process.
© 2026 

Katherine Martin. All Rights Reserved.