“For many Canadians, buying their first home is the single, largest purchase they have ever made,” Nathalie Fredette, vice-president, client relationship management for CMHC, said in a release. “Our aim is to provide mortgage brokers, lenders and other industry professionals with valuable information and useful tools so they can better guide their clients through this major life event.”
According to the study, first-time buyers are two-times more likely to use social media to research buying information. Brokers, are your profiles up-to-date?
Another finding that brokers will find useful is that first-time buyers aren’t as confident in the buying process as repeat purchasers. They tend to have a lower understanding of their mortgage options and generally find the process more difficult.
That presents an opportunity for brokers to ease those frustrations by providing expertise and instilling confidence in these buyers.
And, unsurprisingly, a large number of these clients rely on brokers.
The survey found 70% of first-time buyers receive advice about rates, terms, repayment strategies, and affordability from brokers or lenders. This advice helped increase buyer satisfaction by over 80%.
“CMHC’s survey results reiterate the central role that mortgage professionals play in providing first-time homebuyers with the information they need to manage their money and debt wisely,” Jane Rooney, Canada’s financial literacy leader, said. “The more we understand the financial literacy needs of Canadians, the better we can be at providing the right information at the right time to help them build their financial knowledge, skills and confidence.”
CMHC released its 2015 first-time homebuyer survey, which details the buying habits of one of the industry’s most lucrative segments.