Are First Time Home Buyers a Risky Bunch?

Katherine Martin • April 9, 2015

Not really. Actually not at all. According to the most recent Genworth survey, first time home buyers are “financially fit, well informed and eager to get into their first homes.”  Taking it a step further…

“The survey shows that today’s first-time home buyers have their eyes wide open, their hands firmly on their pocketbook and are thinking hard before assuming the responsibility of homeownership,”~ Stuart Levings , President and CEO of Genworth Canada.

He even goes on to say “This prudence and careful planning should serve Canada’s housing market well as responsible first-time buyers grow into responsible long-term owners.”

This is great news! Click through for the Genworth  Presentation (Slides), the Webcast  or the press release.

Also, here is an infographic that shares some interesting stats on first time home buyers.

So Why The Increase in Premium?

On April 2nd 2015 CMHC announced that effective June 1st, 2015, the mortgage loan insurance premiums for homebuyers with less than a 10% down payment will increase by approximately 15%. You can find that on my blog here >>

Genworth decided to follow suit and matched CMHC’s increase.

So with the survey results pointing to first time home buyers being a savvy bunch and not a risky bunch, is it a little odd that the same week Genworth increases it’s insurance premium? Isn’t premium based on risk?

Well… that conclusion is based on the assumption that first time home buyers are the ones purchasing homes with 5% down. Actually these survey results don’t show that at all.

Remember… anyone can purchase a home with 5% down, this isn’t a financing option that is limited to first time buyers.

Here are some stats from the survey about the downpayments of first time home buyers.

  • The median home price was $293k, while the median downpayment was $34k representing 12% of the total home price.
  • 69% of downpayment funds came from savings.
  • 22% of downpayment funds came from a gift from a family member.
  • 63% indicate making a down payment of less than 20% which means 37% had over a 20% downpayment.

Obviously it would be nice to know how many of the survey respondent’s did purchase with 5% down, but unfortunately Genworth didn’t release those stats.

So if you are a responsible first time home buyer, looking for some direction and help with the mortgage process, I would love to work with you (even if you only have a 5% downpayment).

 

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


RECENT POSTS

RRSP Home Buyers’ Plan Explained: A Smart Way to Buy Your First Home

By Katherine Martin • August 5, 2026
Saving for a down payment is one of the biggest challenges first-time buyers face. What many don’t realize is that the Canadian government offers a program designed to make it easier—the Home Buyers’ Plan (HBP) . This program allows you to withdraw money from your RRSP to help purchase your first home, without immediate tax consequences. Here’s how it works: Who Qualifies? To be eligible, you generally need to be a first-time home buyer. In practical terms, this means you must not have owned a home in the past four years, nor lived in a property owned by your spouse or partner during that time. There are also special allowances if you’re living with a disability or helping a relative with a disability. In these cases, you can use the HBP even if you’ve owned a home more recently. How Much Can You Withdraw? Under the program, you can access up to $35,000 from your RRSP as an individual. Couples can combine their withdrawals for a total of $70,000 . These funds must have been in your RRSP for at least 90 days before you take them out. Paying It Back The HBP isn’t “free money”—it’s an interest-free loan from your own retirement savings. You’ll have 15 years to repay the full amount back into your RRSP, starting in the second year after withdrawal. Each year, the CRA will send you an HBP Statement of Account outlining how much needs to be repaid. If you don’t make your repayment in a given year, that amount will be added to your taxable income. Why It’s a Smart Strategy The HBP can give first-time buyers a powerful boost toward homeownership. It helps you put together a larger down payment, which can reduce your mortgage amount and monthly payments. Just remember: it’s important to balance the short-term benefit of homeownership with the long-term impact on your retirement savings. Next Steps Thinking about using the Home Buyers’ Plan? Let’s sit down and review whether it’s the right move for you. Together, we can create a strategy that gets you into your first home while keeping your future financial goals on track. 📞 Reach out anytime—it would be a pleasure to guide you through the process.

Employment and Mortgage Qualification: What Lenders Look For

By Katherine Martin • July 29, 2026
When you apply for a mortgage, your employment history and status carry a lot of weight. Even if you feel secure in your job, lenders need proof that your income is reliable and will continue. To them, your employment status is one of the strongest indicators of whether you can make your mortgage payments long term. Here’s how lenders typically view different employment situations: Permanent Employment This is the gold standard. Once you’ve passed any probationary period and hold permanent status, lenders see you as a lower risk. It shows that your employer is committed to you, and your income is steady. Probationary Periods If you’re still on probation—usually 3 to 6 months, though sometimes longer—lenders may hesitate. That’s because your employer can end your contract without cause during this period. Once probation is over, you’re considered more secure. That said, context matters. If you’ve worked with the same company for years as a contractor and just transitioned into full-time employment, lenders may accept a letter from your employer confirming that probation is waived. Documentation is key here. Parental Leave Being on or about to take parental leave doesn’t mean you can’t qualify for a mortgage. As long as you have a letter from your employer guaranteeing your position and return-to-work date, lenders can use your regular salary—not your leave income—when assessing your application. Term Contracts This is one of the trickiest categories. Even highly skilled professionals with strong incomes can face challenges here. A term contract has a start and end date, which makes lenders question the stability of your future income. To use term-contract income, lenders generally want to see at least two years of history, or proof that your contract has already been renewed. The more evidence you can show of consistent employment, the stronger your case will be. The Bottom Line If you’re planning to apply for a mortgage, it’s important to understand how your employment status could affect your approval. Whether you’re starting a new job, coming back from leave, or working under contract, lenders want documentation that proves your income is reliable. 📞 If you’ve recently changed jobs or are planning a career shift, let’s connect. I can help you prepare your file so you qualify with confidence and avoid surprises in the approval process.
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