If your millennial client is buying her first home, she may have mortgage concerns that need to be addressed.
That’s because only 12% of Ontario millennials likely to get a mortgage say they feel very confident they know everything they need to know to make the best decisions, reveals a survey by the Financial Services Commission of Ontario (FSCO). And 47% say they aren’t very or at all confident.
Other survey findings:
- Only 22% of millennials likely to get a mortgage know they need a 5% down payment to buy a home in Ontario.
- When asked about closing costs, only 39% named legal fees, 24% named land-transfer tax and 8% named insurance; 25% didn’t know what closing costs are.
Meanwhile, of millennials who already have a mortgage, many are not prepared to deal with unexpected events or costs:
- Just 42% say they have six months of emergency savings in case something unexpected happens, such as losing a job.
Read: Not all mortgage rate hikes are created equal
- Just more than a third (37%) say they understand very well what happens if they miss a mortgage payment.
- Fewer than half (43%) have a life, disability or critical illness insurance policy on the mortgage.
Read: Sudden rise in rates could drop home prices by 30%: CMHC
For client information on mortgages, visit FSCO’s website.
Also read: GTA builders providing smaller, more affordable homes