This is a study conducted by Genworth Canada in 2014.
What does the average first-time home buyer look like? Who are they? What do they have saved and what will they spend? We profile the average first-time home buyer by the numbers.
If you are looking forward to one day being a first-time home buyer, chances are you are starting to plan for that purchase today. Purchasing your first home is one of the most exciting experiences you will have in your life, and is one of the largest purchases you will ever make. The act of home buying involves considerable sacrifice in order to save up for the deposit and finding a home to suit your needs. While everyone is generally on a different path, knowing what the average first-time home buyer in Canada looks like can certainly help in knowing whether you are ahead of the game or slightly behind.
The Average First-Time Home buyer in Canada
If you are in your twenties, thinking about home ownership should definitely be something on your mind. While it may not be something you can afford to do for a number of years, starting to plan immediately will help you. The average first-time home buyer in Canada has three unique characteristics:
- They are generally in their late 20s. In a study conducted by BMO in 2013, which surveyed 2000 first-time homebuyers, the average homebuyer was determined to be about 29 years old.
- They buy a home valued at $316,100 on average. This number is different in major cities, such as Vancouver where the average is $506,500, Toronto at $408,300, Calgary at $363,400 and in Montreal where the cost is less than the national average at $237,900.
- On average, a first-time homebuyer in Canada has $50,576 to put towards their down payment. This means that the average homebuyer has about 16% of the cost of the home, meaning they need to insure their mortgages with an insurer like Genworth (as mortgage insurance is required when a buyer has less than a 20% down payment).
- The average home in Ontario is $423,691, while the average first-time homebuyer spends $358,400. In 2014 the average home price in Novemeber was $577,502.
- In 2015 the average home price was $632,35.00 up 9% year over year.
Other First-Time Homebuyer Statistics
The study also found out some interesting statistics related to first-time home buyers.
The question you need to pose to yourself is – how prepared are you? If you already have a larger deposit saved, perhaps you can invest in a slightly better property. If you are behind the average, consider services like Genworth’s down payment options.