TD Canada Trust has released their 2011 First Time Buyers Report and compared to last year buyers are doing less homework during the home buying process.
For the report data was collected from 1,000 Canadians who had either bought their first home in the past 24 months or intend to buy their first home in the next 24 months.
The one statistic of the survey that really stood out to me is many first time buyers are not getting pre-approved for a mortgage before shopping for a home. (Nationally 76% down from 91%)
One of the reasons I think people are less likely to obtain a pre-approval is because many of the banks have pre-approval calculators right on their websites. All you have to do is plug in a few numbers and it looks easy to get a mortgage and I believe many people think that just because they make “x” amount of income they are just automatically approved. This is definitely not the case and I stress to all my clients the importance of a pre-approval. Not just to lock in a rate but more importantly instead of finding a home you can’t afford, you will find your dream home for your budget.
What home buyers need to understand better is the process of purchasing a home and while there is a wealth of information online including our Homebuyers Guide this information should never replace speaking with a mortgage professional.
“Compared to last year, homebuyers doing slightly less homework”
Other key findings from the report:
First time homebuyers are most likely to say they would not compromise on:
First time homebuyers are most willing to make concessions about: