First-time buyers in Quebec and the Greater Montreal Area least worried among Canadians about missing out on a home due to insufficient down payment
- 67% of first-time homebuyers in the Greater Montreal Area and 57% in the province of Quebec reported feeling worried that they would not have a large enough down payment to purchase a home they really wanted, before buying their first property
- 29% of first-time homebuyers in Quebec (33% in the Greater Montreal Area) received financial assistance in a lump sum payment from parents/relatives toward their down payment
- 43% of first-time homebuyers in Quebec purchased a home in a more affordable neighbourhood or region than they had originally planned, due to tighter economic conditions
MONTREAL, June 28, 2023 – A new survey[1] released by Sagen™, conducted by Environics Research, with a series of questions for Royal LePage, reveals that among the surveyed provinces, the number of first-time buyers – those who purchased their first home in the last two years – who reported feeling worried about missing out on a home they really wanted because of an insufficient down payment, was lowest in Quebec. The same trend was observed among respondents in the Greater Montreal Area who reported feeling less worried compared to the other metropolitan areas surveyed: the Greater Toronto Area, Greater Vancouver and Greater Calgary.
In the province of Quebec, 57% of first-time homebuyers expressed feeling worried their down payment would not be enough to get the home they wanted (56% in 2021) prior to purchasing their first property, compared to 67% of respondents in the Greater Montreal Area (63% in 2021). Nationally, 67% of first-time homebuyers reported feeling worried, while 74%, 71% and 69% of this cohort reported feeling the same in the greater regions of Toronto, Vancouver and Calgary, respectively. However, among first-time intenders – respondents planning to purchase their first property within the next two years – the trend is reversed, with more respondents in the Greater Montreal region reporting feeling anxious, compared to the other metropolitan areas surveyed (70%).
“While home ownership is more affordable compared to other Canadian provinces, home prices in the Greater Montreal Area and within the province have risen significantly over the past three years, keeping many would-be buyers out of the market,” said Geneviève Langevin, real estate broker, Royal LePage Altitude in Montreal.
As a result of tight economic conditions, 43% of first-time homebuyers in Quebec purchased a home in a more affordable neighbourhood or region than they had originally planned (43% in the GMA). In the province of Quebec, 29% of first-time homebuyers purchased a smaller home than they had originally planned (37% in the GMA), and eight per cent say they had to seek financial assistance from family or friends (15% in the GMA). Among the metropolitan regions surveyed, the Greater Montreal Area reported the highest proportion of first-time buyers who did not receive financial assistance to purchase their property (36%).
“Buyers who purchased a home during the pandemic real estate boom bought at higher prices, but at historically low interest rates,” said Langevin. “We will have to wait for mortgage renewals to know the full effects of rising borrowing costs on the market. However, buyers are somewhat protected from default by the mortgage stress test, which requires them to qualify at a rate higher than the bank’s negotiated rate. This is a very good thing, as buyers can avoid having to sell as a result of not being able to repay their loan.”
According to the survey, 29% of first-time homebuyers in Quebec (33% in the GMA) say they received financial assistance in a lump sum payment from their parents or relatives toward the purchase of a home. Meanwhile, 25% of first-time buyers in the province say they received financial help with their monthly mortgage payments (28% in the GMA). Forty-seven per cent of first-time homebuyers in the province of Quebec received their financial assistance as a gift (50% in the GMA).
2023 First-time Homebuyer Survey Chart: rlp.ca/table_2023first-timehomebuyersurvey
Access the full national release here:
https://rlp.ca/2023first-timehomebuyersurvey
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About the Survey
The study was completed by Environics Research on behalf of Sagen MI Canada Inc. A total of 2,223 interviews were conducted with Canadians aged 25-45 who had either purchased their first home within the prior two years or plan to in the next two years. Online interviewing was completed between February 22 and March 27, 2023. Quotas were set to oversample in urban regions with weighting to bring them into overall national proportions.
About Royal LePage
Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for 25 years. Royal LePage is a Bridgemarq Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE. For more information, please visit www.royallepage.ca.
About Sagen MI Canada Inc.
Sagen MI Canada Inc., operating through its wholly owned subsidiary, Sagen Mortgage Insurance Company Canada (doing business as SagenTM), is the largest private sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Sagen differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system.
For further information, please contact:
Lara Berguglia
North Strategic for Royal LePage
lara.berguglia@northstrategic.com
514-994-2382
[1]The study was completed by Environics Research on behalf of Sagen MI Canada Inc. A total of 2,223 interviews were conducted with Canadians aged 25-45 who had either purchased their first home within the prior two years or plan to in the next two years. Online interviewing was completed between February 22 and March 27, 2023. Quotas were set to oversample in urban regions with weighting to bring them into overall national proportions.
