The vast majority (85 per cent) of first-time buyers are spending the maximum they can possibly afford on their first home purchase, reveals a Canada Housing and Mortgage Corporation (CMHC) survey released October 18.
That compares with 68 per cent of repeat home buyers stretching their budgets to the max, according to the survey of 4,000 Canadians who took out a mortgage in the past year.
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Of all homebuyer respondents (not including mortgage renewer respondents), 43 per cent said they spent more on their new home than they had planned.
Affordability was the number one concern of first-time buyers, with more than twice as many first-timer respondents citing this as their biggest factor in choosing a home, compared with other factors such as location and condition of the property.