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Millennials are the Engine of the Real Estate Market

May 7, 2018

TORONTO, May 7, 2018 /CNW/ - According to a national study commissioned by Genworth Canada, six in ten (59 per cent) millennials have already achieved their homeownership dreams. Among those who own their homes, three in ten (30 per cent) millennials bought their first home or a home that was not their first in the past two years, compared to just 9 percent of older Canadians. And over the next two years, among non-owners another 30 per cent of millennials plan on making their first home purchase, making them the engine of the real estate market. The annual poll, completed in conjunction with the Canadian Association of Credit Counselling Services (CACCS) from February 8 – March 27, 2018, asked 2,000 Canadians questions about their financial well-being, homeownership intentions and preparedness for the future.

The national Financial Fitness and Homeownership Study shows that Canadians remain committed to homeownership and those who own a home have better financial outcomes than those who do not. Homeowners are far more likely to say they are in great/good financial fitness versus non homeowners. Here's the break-down of those who say they are in great/good financial shape:

  • 68 per cent of first-time buyers
  • 58 per cent of first-time intenders
  • 59 per cent of repeat buyers
  • 62 per cent of repeat intenders

"It is encouraging to see the high level of financial confidence coming from first-time homebuyers and homeowners. As a company that is committed to providing financial literacy education to aid those looking to achieve homeownership, these results demonstrate that this segment of Canadians are doing the necessary homework to support their financial future," said Stuart Levings, President and CEO of Genworth Canada.  

Homeownership is a mainstay for many Canadians' financial well-being and homeowners demonstrate greater financial discipline and report greater long-term confidence in their financial outlook.

Here is a look at how homeowners and first-time buyers/intenders feel about their financial shape:


Total

Home-
owner

Non Home-
owner

First-Time
Buyers

First-Time
Intenders

Repeat
Buyers

Repeat
Intenders

Intend
DP<20%

Intend
DP 20%+

Great/good
financial shape

53%

60%

38%

68%

 

58%

59%

 

62%

 

59%

 

69%


I am in great financial shape - I have set clear financial goals that I am well on my way to achieving

14%

17%

7%

19%

14%

17%

16%

17%

15%


I am in pretty good shape- I have a general notion of what I want to achieve with my finances, and things are more or less going in the right direction

39%

43%

30%

50%

44%

43%

46%

42%

54%

I am neither in great
shape nor poor
shape - I try to save
when I can but I
don't seem to be
getting ahead

30%

28%

34%

25%

34%

30%

23%

29%

22%


My financial fitness is not very good - I know that I haven't been able to achieve the financial goals that I should have by now

10%

8%

14%

3%

4%

6%

10%

9%

5%


My financial fitness is very poor - I feel like I am always falling behind and/or that I don't know where to turn for help

6%

3%

11%

3%

2%

2%

4%

1%

2%

Very poor/
not very good

16%

11%

25%

6%

6%

8%

14%

10%

7%

Don't know/not sure

2%

1%

3%

0%

3%

2%

1%

2%

2%

 

DP = Down Payment

 

"Being intentionally aware of the state of your personal finances is especially important when considering the purchase of a home. Understanding how financially fit you are by exploring your Financial Fitness score at www.caccs.ca is quick, easy and free – but rich in value because it can help guide wise financial choices," according to CEO Henrietta Ross of the Canadian Association of Credit Counselling Services. This score is based on attitudinal, behavioural and outcome measures that were developed from Financial Fitness index benchmark data.

During the week of May 7-11, 2018, Genworth Canada will have a series of educational webinars in celebration of their annual Homeownership Education Week event where industry professionals can learn more about this and other topics.

To read the full 2018 Financial Fitness and Homeownership Study report, visit Genworth.ca.

About Genworth MI Canada Inc.

Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada ("Genworth Canada"), is the largest private residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Genworth Canada differentiates itself through customer service excellence, innovative processing technology and a robust risk management framework. For more than two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system.  As at March 31, 2018, Genworth Canada had $6.8 billion total assets and $4.0 billion total shareholders' equity. Find out more at www.genworth.ca 

SOURCE Genworth MI Canada

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