OSFI Considering Mortgage Amortization Changes

Rob McLister, CMT, CanadianMortgageTrends.com


Federal policy-makers are exploring additional mortgage rule tightening, CMT has confirmed.

A spokesperson from Canada’s banking regulator, The Office of the Superintendent of Financial Institutions Canada (OSFI), verified that it is looking at the issue of limiting amortizations to 25 years on conventional mortgages (those with 20%+ equity). Currently, those “low-ratio” mortgages can have amortizations up to 35 years.

OSFI is “doing some preliminary consultation with financial institutions” on the matter, said the spokesperson.

Those communications appear to be behind the scenes with banks and federally-regulated trust companies. OSFI will not be issuing a public statement in the very near term (i.e., next week).

The regulator added, “We are working to determine the desirability of some changes given current conditions in housing markets and recent trends in household indebtedness.”

“A decision in that regard would be taken once we hear back from the industry. Any proposed changes to our mortgage guideline that may result from this work would be subject to a public consultation process.”

Officials from OSFI, the Department of Finance (DoF) and the Bank of Canada have been working together closely. Their aim is to stabilize housing, moderate debt levels and reduce economic exposure to rising rates.

When implementing the last set of mortgage changes in 2012, Finance Minister Flaherty made it crystal clear that he considers it “desirable” to make home buying more difficult.

In December, he told reporters: “Less demand, lower prices, modestly, in the housing market are much better for Canadians than a boom followed by a bust. So I'm all for a soft landing.”

But real estate has been more resilient than many expected. And some at the DoF are not satisfied that housing is slowing fast enough.

Recent data show national home sales down roughly 15% year-over-year. Mortgage volumes have dipped as well. But home prices are marching stubbornly higher, hitting a new record high in March according to Canadian Real Estate Association (CREA) figures.

There’s every reason to suspect that the DoF will keep applying air brakes until the housing plane has no more lift. Then it becomes a question of whether home prices glide lower or break into an all-out dive (a lower probability).

Death Sentence for Extended Amortizations?

Rob McLister, CMT, CanadianMortgageTrends.com


Housing commentator Garth Turner cites insider info that long-term amortizations are about to go extinct, at least where the federal government has jurisdiction.
In a blog post today, he writes:

“Last week the CEOs of the monster banks were given a clear message that 30-year mortgages need to be wiped away. Completely. In fact, they’ll be banned. That letter will go out next week, the result of a decision made jointly by the Department of Finance, OSFI (the bank regulator) and the Bank of Canada.”

This applies to mortgages that: (a) are from lenders subject to federal regulation, and (b) have 20% or more equity. Amortizations on prime mortgages with less than 20% equity are already capped at 25 years.
If true (with emphasis on the word "if"), this news could:

1. Increase monthly payments on new conventional mortgages by about $53 per $100,000 of mortgage, other things being equal.*
2. Potentially impact even smaller non-bank lenders (e.g., First National, Street Capital, MCAP,…). That’s because, as Turner adds:
   
   “Regulated financial institutions will also be prevented from buying any securities which are made up [of mortgages] with 30-year ams.”
   
   Virtually all non-deposit-taking lenders rely on securitization and/or selling mortgages directly to banks.
3. Make provincially-regulated credit unions the only game in town for amortizations over 25 years. That would provide credit unions who keep long-amortization mortgages on their balance sheets with another advantage versus the banks. CUs already sidestep federal mortgage rules by offering HELOCs above the federal 65% loan-to-value (LTV) maximum, higher LTV stated income mortgages and mortgages with lower qualification rates.

As noted, none of the above has been confirmed. So the above should be considered speculation until it is. We’ll do more digging and report back.

---

Update, May 10, 12:40 p.m. ET: We've contacted the Department of Finance (DoF) for comment. Banking sources have confirmed reports of the DoF contemplating amortization guideline changes for conventional mortgages. But there's no confirmation on what, if any, moves will be made. Assuming the DoF acts on this issue, an alternative possibility is that conventional borrowers be made to qualify at a 25-year amortization, but still be allowed to set payments at a longer amortization.

* Assumes a fixed rate of 2.89%, 20% or more equity and an amortization reduction from 30 years to 25 years.

It’s love at first sight for most new homebuyers

Linda Nguyen, Canadian Press
The Financial Post


TORONTO — Looking for a perfect home can be an emotional roller-coaster, but a new study suggests finding the right property often comes down to love at first sight.

In its report titled Psychology of House Hunting, the Bank of Montreal found that 80% of prospective homebuyers know if a house is the right one for them the moment they step inside.

But it’s usually a long journey before they get to that point.

The study found that on average, house hunters visit 10 homes before they decide to buy a home, while 68% say they’re willing to settle for a property that’s not “perfect.”

Thirty-three percent say they feel rushed into making a purchase, with that figure rising to 39% among first-time homebuyers.

Those looking for a new home also express a wide variety of emotions, from 48% saying they’re excited, 41% saying they feel cautious and 31% saying they’re optimistic. Twenty-five percent of those polled say they’re stressed through the process, while 21% say they feel anxious.

First-time homebuyers are also more likely to feel stressed and anxious, compared to those who have owned a property before.

“It’s important to take a practical approach when house hunting and have a clear idea of where you stand financially to ensure you make a responsible home buying decision,” said Laura Parsons, a mortgage expert with BMO.

“Doing research ahead of time and setting realistic expectations can help you avoid making an uninformed or rushed purchase.”

The study also looked at the motivations behind a home purchase. It found 44% buy because they felt it was a good investment and 37% say it was a good time to jump into the market.

Twenty-three percent say exploring a new neighbourhood was one of the reasons why they bought a new home, while 18% say it was because they were expecting a baby.

The survey was conducted by Pollara using online interviews with a random sample of 2,000 Canadians 18 years of age and over conducted between Feb. 25 and March 5.

The polling industry’s professional body, the Marketing Research and Intelligence Association, says online surveys cannot be assigned a margin of error because they do not randomly sample the population.

Finances and buying a house

CNN Money


If you're ready to buy a home, you need to get your finances in order first.

For most people, buying a house involves a double financial whammy.

First you have to assemble a pile of cash for the down payment and closing costs. Then you must convince a bank to lend you an even more staggering sum - generally 80% or more of the purchase price.

So your first step, even before you start the actual hunt for a property, should be to get your financial house in order.

Start with your credit

Credit reports are kept by the three major credit agencies, Experian, Equifax, and TransUnion. Among other things, they show whether you are habitually late with payments and whether you have run into serious credit problems in the past.

A credit score is a number calculated from a formula created by Fair Isaac based on the information in your credit report. You have three different credit scores, one for each of your credit reports.

A low credit score may hurt your chances for getting the best interest rate, or getting financing at all. So get a copy of your reports and know your credit scores; reports and scores from Equifax and TransUnion.

Errors are not uncommon. If you find any, you must contact the agencies directly to correct them, which can take two or three months to resolve. If the report is accurate but shows past problems, be prepared to explain them to a loan officer.

Know what you can afford

Next, you need to determine how much house you can afford. You can start with one of the Web's many calculators. For a more accurate figure, ask to be pre-approved by a lender, who will look at your income, debt and credit to determine the kind of loan that's in your league.

The rule of thumb here is to aim for a home that costs about two-and-a-half times your gross annual salary. If you have significant credit card debt or other financial obligations like alimony or even an expensive hobby, then you may need to set your sights lower.

Another rule of thumb: All your monthly home payments should not exceed 36% of your gross monthly income.

The size of your down payment will also determine how much you can afford.

Line up cash

If you haven't already, you'll need to come up with cash for your down payment and closing costs. Lenders like to see 20% of the home's price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan. If you have less, you'll need to find loans that can accommodate you.

A warning: With a down payment under 20%, you will probably wind up having to pay for private mortgage insurance, a safety net protecting the bank in case you fail to make payments. PMI adds about 0.5% of the total loan amount to your mortgage payments for the year. So if you finance $200,000, your PMI will cost $1,000 annually.

Once you've considered the down payment, make sure you've got enough to cover fees and closing costs. These may include the appraisal fee, loan fees, attorney's fees, inspection fees, and the cost of a title search. They can easily add up to more than $10,000 - and often run to 5% of the mortgage amount.

If your available cash doesn't cover your needs, you have several options. First-time homebuyers can withdraw up to $10,000 without penalty from an Individual Retirement Account, if you have one, though you must pay taxes on the amount. You can also receive a cash gift of up to $13,000 a year (the limit for 2009) from each of your parents without triggering a gift tax.

Gift taxes are paid by the donor, not the recipient.

(NOTE: these values and amounts are from USA source.  Please check with your mortgage broker for Canadian values and amounts, and any differences in laws.)

Tips for buying a house

CNN Money

The top 10 things you need to know when buying a home.

 

1. Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.

2. Start by shoring up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can't put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

Homebuyers clueless about mortgages

By Les Christie @CNNMoney

The housing market is heating up, yet many house hunters are not prepared to take on the biggest purchases of their lives.

When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.

Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage. 

"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."

One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.

But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.

Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.

And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins.

"If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.

For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid. 

Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.

Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.

Death Sentence for Extended Amortizations?

Rob McLister, CMT, CanadianMortgageTrends


Housing commentator Garth Turner cites insider info that long-term amortizations are about to go extinct, at least where the federal government has jurisdiction.

In a blog post today, he writes:

“Last week the CEOs of the monster banks were given a clear message that 30-year mortgages need to be wiped away. Completely. In fact, they’ll be banned. That letter will go out next week, the result of a decision made jointly by the Department of Finance, OSFI (the bank regulator) and the Bank of Canada.”

This applies to mortgages that: (a) are from lenders subject to federal regulation, and (b) have 20% or more equity. Amortizations on prime mortgages with less than 20% equity are already capped at 25 years.

 

If true (with emphasis on the word "if"), this news could:

1. Increase monthly payments on new conventional mortgages by about $53 per $100,000 of mortgage, other things being equal.*
2. Potentially impact even smaller non-bank lenders (e.g., First National, Street Capital, MCAP,…). That’s because, as Turner adds:
   
   “Regulated financial institutions will also be prevented from buying any securities which are made up [of mortgages] with 30-year ams.”
   
   Virtually all non-deposit-taking lenders rely on securitization and/or selling mortgages directly to banks.     
3. Make provincially-regulated credit unions the only game in town for amortizations over 25 years. That would provide credit unions who keep long-amortization mortgages on their balance sheets with another advantage versus the banks. CUs already sidestep federal mortgage rules by offering HELOCs above the federal 65% loan-to-value (LTV) maximum, higher LTV stated income mortgages and mortgages with lower qualification rates.

As noted, none of the above has been confirmed. So the above should be considered speculation until it is. We’ll do more digging and report back.

---

* Assumes a fixed rate of 2.89%, 20% or more equity and an amortization reduction from 30 years to 25 years.

Negotiating your first mortgage? Check out these tips

Derek Raymaker

Special to The Globe and Mail

 

 

It’s been a lot of hard work, but you are finally ready to join the ranks of the home-owning class.

You’ve paid off your debts, socked away enough money for a decent down payment, trolled through open houses and found the perfect place. Your offer has been accepted and you have two months to close the deal.

This is when many first-time home buyers finally get around to arranging their mortgage, according to Larry White, a 20-year veteran mortgage broker.

“A lot of people spend more time researching a television purchase than their mortgage,” says Mr. White, a broker with Invis.“I have had a lot of people call me when they’re closing in two or three weeks and they haven’t done any of the background work.”

The good news is that mortgage competition is so fierce right now that you can negotiate better terms on rates, fees and restrictions - provided you go in armed with some knowledge. Mortgage rates are not quite at an all-time low, but they are very attractive in the historical sense and easy to compare online.

One thing to keep in mind is that the rates posted at your bank or blinking at you in online ads are just a starting point. These rates are not only high, they are also likely to come loaded with caveats, including tight restrictions on making lump-sum payments and high fees when leaving the mortgage prior to renewal. (There is a reason why they’re called "sucker rates.")

Here’s our list of five things to remember as you prepare to wheel and deal:

Start early and be prepared

The bank where you have your chequing account will be more than happy to do a basic mortgage pre-approval document for you, but that won’t be enough to close the deal. You will need an up-to-date personal credit score, tax assessments from the last two years, and a thorough accounting of your income, including non-salaried contracts and debt.

Along with your down payment, you’ll need enough cash on hand to cover pay closing costs - roughly 2 per cent of the purchase price - for legal fees, mortgage insurance, title insurance and land transfer taxes. You should also be prepared to pay utility deposits in your new home. If you’re moving into a condo, don’t forget to budget for maintenance fees.

Have a strategy in place and a product in mind to achieve it

This is where a mortgage broker can really help you. Keep in mind, however, that they are paid by the financial institution to whom they bring your business - not you. Familiarize yourself with the mortgage basics - read up on how a fixed–rate mortgage compares to a variable-rate and the difference between a closed and open mortgage. Don’t automatically take a five-year-fixed mortgage, but research the various terms that are available.

This is where you should consider how important features like pre-payment options and break fees are to you. If you come into large sums of cash, you should consider a flexible mortgage that does not restrict you from making lump-sum payments. If you are due for a raise, hone in on pre-payment features that allow you to increase your payments without penalty.

Think about what will work best for you

If you’re starting a family or are in line for promotion that involves moving to another city, you could be upgrading sooner than you think. Unexpected life events, like an illness or divorce, can also lead to you paying a hefty break fee, which is basically a penalty for leaving your mortgage early.

Most lenders calculate penalties based on the amount left owing in your mortgage term and the rate differential between your interest rate and the current posted rate or the lender's discounted rate. In other words, they usually do not make it easy. As a general rule, expect to pay at least three months of interest multiplied by the rate differential to break your mortgage. Definitely probe the lender on their break fees. Hidden or vague break fee policies are the most common consumer complaint regarding mortgage products.

If your property is going to need renovations, make sure you have access to a home-equity line of credit. Remember: The mortgage that is right for your neighbour might not be the right one for you. Don’t be intimidated as a first-time buyer or feel pressured to accept a one-size-fits-all mortgage that might look cheap but comes loaded with expensive restrictions.

Approach it like you’re searching for a financial planner

First-time buyers looking for a mortgage will probably automatically go to where they do their daily banking. And the person they speak to could very well be the same person that sells them investment products like GICs.

“Experience counts,” says Mr. White. “Some institutions are more experienced than others. Some are order-takers. Some will help shape a product based on the information you share.”

That information should include your future financial goals and craft a payment schedule to achieve that. Your financial plan needs to reflect many things - like how much you are putting away for retirement, saving for a child’s education, or investing in home improvements.

There are an abundance of mortgage calculators around, including this one from the Globe, that can help you determine what you can afford and over how long.

Remember you have more leverage than you think

The bottom line is that the mortgage lending market is extremely competitive, and that makes first-time buyers highly prized clients.

Furthermore, the recent decline in the volume of home sales has put pressure on lenders to reach their goals of signing new business. The Financial Consumer Agency of Canada has produced this slick video of how to negotiate a mortgage with several lenders.

“Lenders are trying to maintain numbers from a year ago,” Mr. White said. “They are all jockeying for position to keep volume.”

Your first mortgage is not just a big loan. It will be a crucial element in determining your net worth, lending risk and ability to plan your financial future. There’s a lot at stake. You can save yourself thousands of dollars in interest alone.

And if interest rates rise, your negotiating prowess could make the difference between being able to make or miss your mortgage payment.

The real cost of home ownership

ROB CARRICK

The Globe and Mail

 

 

The sucker’s analysis of whether it’s affordable to buy a first home is to compare the cost of rent and a mortgage payment.

Any veteran homeowner can tell you that mortgage payments are only a portion of what it costs to own a home. First-time buyers may be familiar with additional costs such as property taxes, but there’s a whole range of other expenses that are sporadic and thus hard to quantify.

Here’s an example: Last month, we had to pay to have a raccoon family evicted from our attic. Other costs of the past few years at our house in Ottawa include new shingles for the roof, a plumber’s visit to replace a leaky water shut-off valve in the basement and a service call for our central air conditioner. There was also a bathroom renovation made necessary by the natural deterioration of house components over time.

Affording these expenses is part of the financial juggling that has always come with home ownership. But these costs require extra attention from today’s prospective buyers. While the housing market has lost momentum in some cities, prices have still risen much faster than incomes for the young adult demographic in the past decade or more (I’ll have more on this in an upcoming column). If you buy today, you may find you’re using up a sizeable share of your household income just to pay the mortgage.

Mortgage rates are still near historical lows, and that’s a big help. But rates will eventually rise. If you’re taking out a five-year mortgage today, expect to pay a higher rate on renewal.

Lenders and real estate agents offer all kinds of help in deciding whether you can afford a house (read my take here). But today’s savvy buyer has to look at affordability from the perspective of both buying and owning. To help first-time buyers understand what they’re getting into, let’s look at the cost of buying a $400,000 house with a 10-per-cent down payment and a five-year mortgage at 2.89 per cent.

Before we get into the costs of owning this house, let’s quickly consider closing costs. The federal agency Canada Mortgage and Housing Corp. estimates that legal fees, land transfer taxes and other costs amount to roughly 1.5 per cent to 4 per cent of the purchase price, or $6,000 to $16,000 in our example.

Not included here is the cost of moving, or of making immediate changes or upgrades in your home. At the low end, you may spend a few hundred dollars at Rona. In a discussion on home ownership costs on my Facebook personal finance page (facebook.com/robcarrickfinance), someone talked about spending $6,000 on changing light fixtures, painting, adding window coverings and such. A small but worthwhile cost when you move in: Spend $200 or so to have the locks re-keyed.

Monthly mortgage payments for our $400,000 home would be $1,860 (accelerated biweekly payments have been converted into a monthly cost), which may be cheaper than rents in some cities. In comparing renting to buying, you have to consider the fact that you’re building equity as an owner. But here we’ll just look at the month-to-month costs of keeping a roof over your head.

My colleague Claire Neary blogged this week about her troubles finding a large one-or two-bedroom apartment in Toronto, and the listings she’s seen are in the $1,700 to $2,200 range. Of course, houses cost more in Toronto, too.

Another basic cost of owning is property tax. Many cities offer online property tax calculators; a Google search will help you find them. Let’s plug in $300 per month here to cover an annual tax bill of $3,600.

Next, add the monthly cost of home insurance. Renters need to pay tenant’s insurance, but the bill is much less than what owners pay. Let’s budget $65 per month, based on an annual premium of around $800. This brings our monthly costs of ownership to $2,225.

One more thought on monthly budgeting: Both renters and owners pay for utilities every month, but you should expect hydro, heating and water bills to be double or more if you own a house.

Now we come to the random home ownership costs that make renting look good: replacing a furnace, reshingling a roof or major paint jobs. For a sampling of these costs, check out a Google spreadsheet I created to get input from readers. Feel free to add your own notes and share the document.
Don’t just think about whether you can afford the various costs of owning a home. The real question is what’s left over afterward for saving and living your life.

How long do Canadians house hunt? 5 months on average, poll finds

Bertrand Marotte

The Globe and Mail

 

 

Canadian home buyers spend an average of five months house-hunting and visit 10 locations before deciding to buy but – post-purchase – they’re more worried about discovering something wrong than about a price-drop, says a new survey.

The poll, done for the Bank of Montreal and released Thursday, found that the biggest worry on home-buyers’ minds once they have completed the purchase is finding problems with the house – 71 per cent – while 55 per cent said they were concerned about a drop in prices.

One-third – 33 per cent – of those interviewed said they felt rushed into making a purchase; for first-time buyers, that rises to 39 per cent.

Four-fifths of prospective buyers said they know if a home is right for them as soon as they step inside, according to the poll results.

On the other hand, 68 per cent of interested buyers are prepared to settle for a home that’s less than ‘perfect,’ says the survey.

In terms of motivating factors, 44 per cent of current homeowners in the poll said they view a home purchase as a good investment, while 37 per cent said they felt the timing to get into the market was right.

Another 23 per cent said they bought a house because they wanted to move to a new neighbourhood, and 18 per cent said a growing family prompted them to buy.

“It’s important to take a practical approach when house hunting and have a clear idea of where you stand financially to ensure you make a responsible home buying decision,” BMO Bank of Montreal mortgage expert Laura Parsons said in a news release.

“Doing research ahead of time and setting realistic expectations can help you avoid making an uninformed or rushed purchase.”

One-quarter of those polled – 25 per cent – said buying a home is stressful, while 21 per cent said it makes them feel anxious.

First-time buyers are likelier to be stressed than the average home buyer: 30 per cent versus 25 per cent.

But the strongest emotions expressed were excitement (48 per cent), cautiousness (41 per cent) and optimism (31 per cent).

The survey was conducted by Pollara, based on interviews with a random sample of 2,000 adult Canadians; it took place between Feb. 25 and March 5, 2013. A probability sample of this size would yield results accurate to plus or minus 2.2 per cent, 19 times out of 20.