Highlights From The First Time Homebuyers Survey

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If you own your own house, then you were once a first-time homebuyer and you know just how interesting and challenging the whole process can be. If you don’t already own a home but are planning on it, the CMHC or Canada Mortgage and Housing Corporation, conducted a survey that may give you some insight into the first-time homebuyer market and overall mentality.

However, the results of the survey are really geared toward mortgage professionals. With these types of results, someone in the mortgage industry can be more efficient and effective when helping a first-time homebuyer.

Here are some of the important highlights of the survey. Used effectively, they should help you foster valuable relationships with clients that carry on into the future. The survey findings are from 2013, so the information is still recent you can use it right away.

Place of Origin

There’s no debating that immigration is alive and well in Canada, and the first-time homebuyer stats reflect this. Almost one-quarter of first-time homebuyers that took part in the survey were born outside Canada. The number of repeat buyers born in another country was only 13 percent, representing a pretty significant difference. Having this information allows mortgage professionals to organize themselves accordingly, and use tools specifically designed for newcomers. If you know that almost one out of every four first-time buyers will be from elsewhere, it gives you a big head start.

Choosing a Home

The survey also showed that first-time homebuyers don’t just go by one factor to select a home, and in fact use a range of different criteria. The home that a first-time buyers ultimately chooses takes both individual and family needs and preferences into consideration.

Using custom designed worksheets for your clients will help them determine what components are most important to them, and help you find it for them. Questionnaires that touch on many different variables will make the search as accurate as possible.

Online Research

Whether it’s good, bad or somewhere in between, the practice of researching online is popular no matter what industry you’re talking about. If you’re talking about first-time homebuyers, the survey revealed 77 percent like to research online, compared to 68 percent of repeat buyers. The first-time buyers like to consult different online sources, which gives the mortgage professional an opportunity to provide one of those sources and gain trust.

Whether you create your website or page, or tap into one that already exists, provide as much information as they need to make an informed decision. Don’t forget to touch on different first-time buyer issues like applying for a mortgage, things to look for when you first walk in and hidden costs.

Consider getting involved with social media if you haven’t already. Facebook and Twitter can really keep the lines of communication open and keep the relationship strong. And since you know that first-time buyers like to look online, you know this is a step worth taking.

Calculations

Online mortgage calculators are a popular tool for helping first-time homebuyers, and there is a difference when comparing why they use them. Almost 80 percent of first-time buyers use them while online, but only 65 percent of those use them to figure out how big a mortgage they can afford. Around 72 percent use the calculator to figure out their mortgage payment amount.

As a mortgage professional, if you can guide them to multiple calculators that will make the process a whole lot easier, you’ll earn serious brownie points. On the CMHC website, you’ll find calculators that help with everything from figuring mortgage payments to working out a household budget.

Lower Confidence

According the survey, confidence that you secured the best mortgage deal possible is lower among first-time buyers. Fewer than 50 percent of those who completed the survey felt that they got the best mortgage to suit their needs, understood the process or thought the process was easy.

This gives a mortgage professional many options when it comes to finding the right mortgage and making the experience as smooth as possible. If you can basically take a first-time homebuyer by the hand and walk them through each step, you’ll get much higher reviews.

Take the information learned from these highlights and use it to your advantage. Find out if a prospective client is a first-timer, then proceed accordingly. Armed with this data, you now know that there’s a noticeable difference between someone buying for the first time and someone who is a repeat buyer. In the end, the experience will be better for everyone involved.

Featured images:
  • License: Royalty Free or iStock source: www.shutterstock.com
  • License: Royalty Free or iStock source: www.shutterstock.com
  • License: Royalty Free or iStock source: www.shutterstock.com

For me, researching on the economy is exciting as its various possibilities and opportunities lie in every aspect of life. These researches allow me to help out people who find it difficult in finding a source or figuring out what to do with the resources that they have. Basically, I am an Economist. – Willard Strong

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This article was submitted by a guest blogger.  Guest blogging provides an avenue to share a variety of different points of view with a broad audience.  It is a good way to share cumulative knowledge as well as introducing readers to a new author.  Learn more about how to become a contributor for Riches Corner.

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