Despite high interest rates, Canadians are taking advantage of buyer’s markets across Canada that are showing up for the first time since the pandemic, a Zolo survey of 800 homeowners who bought in 2023 found.
Much of the trends were a result of higher interest rates and the reduced buying power that was created. Therefore, homebuyers looked for ways to make their overall costs as low as possible.
The trends: Mortgage shopping, enlisting family, co-purchasing
People are shopping for the best rates, boosting down payments with the help of family (68 per cent) or pooling resources to co-purchase with friends or relatives (35 per cent, compared to 38 per cent who bought as a romantic couple).
Other findings included 34 per cent of buyers shopping for a mortgage lender (compared to 26 per cent in 2022). 38 per cent of buyers use a mortgage broker, which helps them secure the lowest possible interest rate.
Saving even a few tenths of a percentage on a mortgage rate can lead to a more affordable monthly payment. The report notes that mortgage expert and author Angela Calla agrees: “Mortgage professionals are dedicated to providing unbiased advice and empowering clients with a range of options tailored to their individual needs and financial goals.”
Home inspections on the rise
As well, 41 per cent of homebuyers used a home inspector, a prudent move to understand the ins and outs of a prospective purchase. In fact, buyers are more frequently getting home inspections compared to 2022 (which only saw 36 per cent using a home inspector).
The report notes this uptick in popularity is likely due to many Canadian markets moving into buyer’s territory, giving buyers more leverage to add conditions like home inspections to an accepted offer.
“It is definitely a result of a more balanced market,” Daniel Foch, real estate expert and host of the Canadian Real Estate Investor podcast, adds to the report. “Less competition means buyers can negotiate more favourable terms on their offers, and home inspections are among those favourable terms.”
Read the full report here.
