8 in 10 Quebec City buyers obtained mortgage on first application

by Steve Randall11 Feb 2019

Most mortgage applicants who bought a home in the Quebec City CMA in the past five years were successful with their first application.

A new Leger survey reveals that 84% did so and that 32% used the Home Buyers’ Plan as the main source of their down payment.

Also, 71% of first-time home buyers make a monthly mortgage payment less than $1,000 and one in five households succeeded in making a down payment of 20% or higher.

The poll has been released by The Association des professionnels de la construction et de l'habitation du Québec (APCHQ), the Québec Federation of Real Estate Boards (QFREB) and the Fonds immobilier de solidarité FTQ.

It found that 17% of buyers over the past 5 years chose a condo with 83% opting for a single-family home.

Intentions weaker, mortgage confidence is high
Just 20% of respondents are intending to buy a home within the next 5 years, down from 24% in 2016. However, among 18-34 year olds this rises to 44% (down from 47%).

The weaker intention was mainly due to respondents’ financial and personal situations in addition to the required down payment.

Among younger buyers, 84% want a single-family home and 59% said a suburb is their preferred choice.

For households intending to buy within the next five years, 70% feel that they can obtain a mortgage. This is 5 percentage points higher than the Québec average.

What buyers want
The survey found that existing properties attract more potential buyers in the Québec City CMA (61%), as they are perceived as less expensive than a new property.

Households anticipate spending an average of $268,300 on a property in addition to $13,800 on renovations.

"Buyers have the advantage in the Québec City CMA. Prices are rising more slowly, and opportunities abound in the residential real estate market. The region enjoys full employment and households have the means to purchase a property suited to their needs," stated Yanick Desnoyers, Manager of the QFREB Market Analysis Department.

Half of boomers may sell and rent
Among over 55s, there is a strong cohort who say they are considering renting when they sell their current home (51%) – largely due to lower maintenance responsibilities.

"The needs of the population are changing; many retirees want less responsibility and more freedom. They see renting as a practical solution, especially if the building is new and offers services such as underground parking, elevators and common rooms. The Québec City market is, in our opinion, conducive to the development of such projects," declared Normand Bélanger, President and CEO of the Fonds immobilier de solidarité FTQ.

 


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