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

Everything You Should Know Before Buying a Home

By Katherine Martin • November 5, 2025
Thinking About Buying a Home? Here’s What to Know Before You Start Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence. This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together. 1. Are You Credit-Ready? One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed. To be considered “established,” you’ll need: At least two active credit accounts (like credit cards, loans, or lines of credit) Each with a minimum limit of $2,500 Reporting for at least two years Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score. 2. Is Your Income Reliable? Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments. Salaried employees in permanent positions generally have the easiest time qualifying. If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation. The more predictable your income, the easier it is to qualify. 3. What’s Your Down Payment Plan? Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is: 5% on the first $500,000 of the purchase price 10% on the portion above $500,000 20% for homes over $1 million You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes). The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable. 4. How Much Can You Actually Afford? There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions. Your approval amount depends on a variety of factors, including: Income and employment history Existing debts Credit score Down payment amount Property taxes and heating costs for the home All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable. Start Early, Plan Smart Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you. We can: Review your credit profile Help you understand how lenders view your income Guide your down payment planning Determine how much you can qualify to borrow Build a roadmap if your finances need some fine-tuning If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.

Bank of Canada Rate Announcement Oct 29th, 2025

By Katherine Martin • October 29, 2025
Bank of Canada lowers policy rate to 2¼%. FOR IMMEDIATE RELEASE Media Relations Ottawa, Ontario October 29, 2025 The Bank of Canada today reduced its target for the overnight rate by 25 basis points to 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. With the effects of US trade actions on economic growth and inflation somewhat clearer, the Bank has returned to its usual practice of providing a projection for the global and Canadian economies in this Monetary Policy Report (MPR). Because US trade policy remains unpredictable and uncertainty is still higher than normal, this projection is subject to a wider-than-usual range of risks. While the global economy has been resilient to the historic rise in US tariffs, the impact is becoming more evident. Trade relationships are being reconfigured and ongoing trade tensions are dampening investment in many countries. In the MPR projection, the global economy slows from about 3¼% in 2025 to about 3% in 2026 and 2027. In the United States, economic activity has been strong, supported by the boom in AI investment. At the same time, employment growth has slowed and tariffs have started to push up consumer prices. Growth in the euro area is decelerating due to weaker exports and slowing domestic demand. In China, lower exports to the United States have been offset by higher exports to other countries, but business investment has weakened. Global financial conditions have eased further since July and oil prices have been fairly stable. The Canadian dollar has depreciated slightly against the US dollar. Canada’s economy contracted by 1.6% in the second quarter, reflecting a drop in exports and weak business investment amid heightened uncertainty. Meanwhile, household spending grew at a healthy pace. US trade actions and related uncertainty are having severe effects on targeted sectors including autos, steel, aluminum, and lumber. As a result, GDP growth is expected to be weak in the second half of the year. Growth will get some support from rising consumer and government spending and residential investment, and then pick up gradually as exports and business investment begin to recover. Canada’s labour market remains soft. Employment gains in September followed two months of sizeable losses. Job losses continue to build in trade-sensitive sectors and hiring has been weak across the economy. The unemployment rate remained at 7.1% in September and wage growth has slowed. Slower population growth means fewer new jobs are needed to keep the employment rate steady. The Bank projects GDP will grow by 1.2% in 2025, 1.1% in 2026 and 1.6% in 2027. On a quarterly basis, growth strengthens in 2026 after a weak second half of this year. Excess capacity in the economy is expected to persist and be taken up gradually. CPI inflation was 2.4% in September, slightly higher than the Bank had anticipated. Inflation excluding taxes was 2.9%. The Bank’s preferred measures of core inflation have been sticky around 3%. Expanding the range of indicators to include alternative measures of core inflation and the distribution of price changes among CPI components suggests underlying inflation remains around 2½%. The Bank expects inflationary pressures to ease in the months ahead and CPI inflation to remain near 2% over the projection horizon. With ongoing weakness in the economy and inflation expected to remain close to the 2% target, Governing Council decided to cut the policy rate by 25 basis points. If inflation and economic activity evolve broadly in line with the October projection, Governing Council sees the current policy rate at about the right level to keep inflation close to 2% while helping the economy through this period of structural adjustment. If the outlook changes, we are prepared to respond. Governing Council will be assessing incoming data carefully relative to the Bank’s forecast. The Canadian economy faces a difficult transition. The structural damage caused by the trade conflict reduces the capacity of the economy and adds costs. This limits the role that monetary policy can play to boost demand while maintaining low inflation. The Bank is focused on ensuring that Canadians continue to have confidence in price stability through this period of global upheaval. Information note The next scheduled date for announcing the overnight rate target is December 10, 2025. The Bank’s next MPR will be released on January 28, 2026. Read the October 29th, 2025 Monetary Report
© 2025 

Katherine Martin. All Rights Reserved.