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Sagen MI Canada — Genworth MI Canada — Genworth Canada Homeownership Education Week Seminar 2015
26 slides from Sagen MI Canada's conference presentation, Apr 7, 2015
Slide 1: Decoding Today's First-Time Homebuyer
x! az Genworth z= Canada Decoding Today’s First-Time Homebuyer Understanding motivations, triggers and behaviours of millennial homebuyers Genworth Canada Homeownership Education Week Seminar April 7, 2015 NOTICE: This document contains confidential, non-public company information. Further distribut
Slide 2: First-Time Homeownership Study Results
First-Time Homeownership Study Results David MacDonald Group Vice President, Financial Services Environics Research Group
Slide 3: Methodology
Methodology Background ● The purpose of this research is to gain deeper insights into the financial preparedness and fitness of First Time homebuyers in advance of the Genworth Canada’s Homeownership Education Week. Methodology ● A total of 1,800 interviews were completed between February 5 to March
Slide 4: Findings
Findings x% NVIRONICS =, 3 Genworth =. s 4 GROUP & Integrity Canada
Slide 5: Type of Home Purchases
Type of Home Purchases Findings: Fully detached home 55% • Over half (55%) of first-time homebuyers say Condominium they purchased a fully detached house. 17% • Just under two in ten purchased a Townhouse/row house 15% condominium (17%) or a townhouse (15%). Duplex/semi-detached • Just over one in t
Slide 6: Type of Home Purchases
Type of Home Purchases Findings: An existing, re-sale • Eight in ten (80%) FTBs say they purchased a re- 80% sale home while two in ten (20%) purchased a home brand new home. • Those in Calgary (31%), the rest of Alberta (31%) Bought brand new or Vancouver (36%) are more likely to say they from buil
Slide 7: Purchased With
Purchased With Findings: With a • Six in ten (62%) purchased their home with a 62% spouse/partner spouse or partner while just over one-third (35%) purchased the home on their own. By yourself 35% • Those in Toronto (47%) and Vancouver (44%) are more likely to say they bought their home on Parents 2
Slide 8: Motivation for Buying Home
Motivation for Buying Home Believe owning a home is a wiser financial decision 53% Saved enough for a down payment 47% Wanting to own the home you live in so are in control of it 47% Became financially confident that I could afford it 44% Disliked renting a home 32% Wanted to buy a home now before p
Slide 9: Importance of Home Characteristics
Importance of Home Characteristics Price 66% 28% 94% Safe neighbourhood 51% 40% 91% Size/space of the home 46% 44% 90% Style/design of home 36% 49% 85% Value as investment/take advantage of rising prices 33% 46% 79% Type of neighbourhood want to raise your kids in 38% 39% 77% Proximity to work 30% 4
Slide 10: Price Paid and Down Payment
Price Paid and Down Payment Findings: Median • The median home price for first-time buyers is $293,000 and the median down payment is Price paid for your home $293K $34,000, representing 12% of the total home price. Total down payment for your • 63% indicate making a down payment of less than $34K h
Slide 11: Price Paid and Down Payment
Price Paid and Down Payment Region Total Vancouver BC Calgary Alberta MB/SK Toronto Ontario Montreal Quebec Atlantic Median Price paid for your home $293K $420K $300k $370k $330K $275K $425K $325K $250K $203K $185K Total down payment for your home $34K $75K $25k $40K $35K $25K $90K $50K $30K $19K $1
Slide 12: Sources for Obtaining Down Payment
Sources for Obtaining Down Payment Your own/partner’s savings/non- Findings: registered investments 69% Withdrawal from an RRSP (Home • Seven in ten (69%) say they obtained Buyer’s Plan) 39% funds for their down payment from Withdrawal from a TFSA (Tax-Free their, or their partner’s, savings or non-
Slide 13: Importance of Sources of Information
Importance of Sources of Information Mortgage broker/specialist 37% 36% 73% Family/friends 28% 43% 71% Bank/credit union representative 28% 39% 66% Real estate agent 24% 40% 64% Internet (personal finance websites/media) 22% 39% 61% Internet (lending institution) 18% 37% 55% Financial planner/adviso
Slide 14: Help in Obtaining Mortgage
Help in Obtaining Mortgage Findings: Mortgage specialist at 66% a bank or credit union • Two-thirds (66%) of first-time buyers say they consulted a mortgage specialist at a bank or credit An independent union 31% mortgage broker • Three in ten (31%) say they consulted an independent mortgage broker.
Slide 15: Additional Debt Since Purchasing Home
Additional Debt Since Purchasing Home Yes, to pay for Findings: renovations/repairs anticipated before you 18% • Under two in ten first-time buyers say they took bought them home on additional debt to pay for renovations they anticipated making when they purchased their Yes, to pay for furniture, 15
Slide 16: Actions Taken in Past Year to Pay Off Mortgage Faster
Actions Taken in Past Year to Pay Off Mortgage Faster Findings: 4% • More than a third (36%) have taken steps Double-up, or increase to pay off their mortgage faster. the amount of your bi- weekly/monthly 24% 72% • One quarter of first-time buyers say they mortgage payments have doubled-up on or inc
Slide 17: Findings: Confidence and Financial Situation
Findings: Confidence and Financial Situation 16
Slide 18: Savings
Savings Findings: Able to pay all your bills & • Half (50%) of first-time buyers say that over the 50% save some money past year they have been able to pay their bills and save money, while one-third (34%) were able Managed to pay all of your to pay their bills but did not grow their savings. bills/
Slide 19: Financial Situation
Financial Situation Findings: • Just over four in ten (43%) say their financial Improved 43% situation has improved over the past year, while nearly half (47%) say their situation has not changed. Stayed the • Nine percent say their situation has gotten 47% same worse. Gotten 9% worse Q46. Compared
Slide 20: Financial Attitudes
Financial Attitudes Findings: I have a lot of confidence in • Eight in ten (79%) first-time buyers agree my long-term financial health 79% they have a lot of confidence in their long- term financial health while three-quarters (73%) agree they have a long-term financial I have a long-term financial
Slide 21: Appendix – Demographic Profiles
Appendix – Demographic Profiles 20
Slide 22: Respondent Profile
Respondent Profile Gender Age 41% 36% Female Male 50% 50% 23% <30 30-34 35+ Region (weighted) 31% 19% 11% 8% 7% 8% 7% 5% 2% 3% Vancouver Rest of Calgary Rest of MB/SK Toronto Rest of Montreal Rest of Atlantic BC Alberta Ontario Quebec 21
Slide 23: Respondent Profile
Respondent Profile Language Birth Place 70% French 23% 20% 10% English In current province In another province In another country 77% New to Canada (Immigrated 2004 or Country Immigrated From* later)* 31% 21% 19% No 38% 12% Yes 9% 7% 62% China/ South Western Other Africa Other Taiwan Asia Europe Asi
Slide 24: Respondent Profile
Respondent Profile Marital Status Education Single, not in a committed relationship 18% High school or less 10% Single, in a committed relationship 10% College/vocational/CEGEP 27% Living together/common-law 25% Married 46% University 43% Separated or divorced 1% Post-graduate studies 19% Widowed <0
Slide 25: About Environics Research
About Environics Research A global company based in Canada, Environics offers a full range of quantitative and qualitative research services, as well as a unique social David MacDonald, MBA, CMRP Robert Stel, MBA, CMRP values methodology and unrivaled Group Vice President Vice President advanced ana
Slide 26: Thank you
Thank you For more information: 1-800-511-8888 Genworth.ca Homeownership.ca Celebrating 20 years of helping Canadians achieve the dream of homeownership.
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