A recent poll done by IPSOS asked first time home buyers how much they will have for a down payment on their first home purchase. According to Canadian Mortgage Trends these are the results and the commentary has been pulled straight from their article:
How long do young buyers expect to save for their first down payment?
53% say up to three years
25% say between four and six years
16% say seven years or more
6% say they’ll never save enough to buy a home
Prospective first-time buyer term choices:
39% prefer a term over five years
(versus 22% of all prospective buyers)
38% prefer a 5-year term
23% want a term less than five years.
Of Canadians in general:
14% of homeowners said they should have made a bigger down payment.
29% of prospective borrowers (42% of first-time buyers) are considering a hybrid mortgage (e.g. part-fixed and part variable). But far fewer (just 7% according to CAAMP) actually choose hybrid mortgages.
Just 5% of homeowners admit to choosing the wrong type of mortgage. (From our experience, far more complain about their financing than 5%. Many don't realize they've taken an inferior mortgage until they learn of their lender's policy on penalties, porting, blending a rate, converting a rate and so forth. Those lessons typically come after closing, when it's too late.)
Term selection is one of the most important topics of conversation and is the top priority in order to save you money in the long run. It should be based on your individual goals and your tolerance for rate movement as this will eventually or instantly affect your mortgage rate or interest you pay depending on the term you select (i.e. fixed or variable) A good discovery conversation is strongly recommended with your mortgage advisor.
Let me know if you have any questions regarding this info or want to start a discovery and advice meeting with me in the future.