A new survey from the Canadian Association of Accredited Mortgage Professionals (CAAMP) suggests that first-time homebuyers are waiting to become financially stable before purchasing a home. The report, known as the Annual State of the Residential Mortgage Market in Canada, found that on average, first-time homebuyers are making 21 per cent down payments on new home purchases.

Data in the survey was collected from a variety of sources, including an online survey of 2,000 Canadians, 57 per cent of which are homeowners with mortgages. Report highlights include:

• As home prices have risen, 17 per cent of down payments have come from family gifts or loans;
• The majority of individuals between the ages of 18 and 34 indicate that they are waiting to purchase a home until prices have fallen and their savings have increased;
• Of the 425,000 households who have purchased homes so far in 2014, 49 per cent were first-time homebuyers;
• Approximately 125,000 Canadian homeowners have fully repaid their mortgages in 2014 and an additional 50,000 to 75,000 expect to repay their mortgages before the end of the year; and
• Nearly 900,000 mortgage holders voluntarily increased their mortgage payments in 2014.

“Overall, the CAAMP fall report paints a picture of homeowners whether just starting out on their ownership journey or long time mortgage holders, as remarkably confident,” says Jim Murphy, President and CEO at CAAMP. “They wait until they are financially stable before buying, and they take advantage of low interest rates to aggressively reduce their mortgage debt. Home ownership continues to be an important anchor for the Canadian economy.”

While home ownership remains an important investment for many, the report also found that two thirds of individuals, aged 55 and older, are renting because it is a better option for them.