Price and affordability were the key factors for four out of five homebuyers in 2019, found the annual Mortgage Consumer Survey (MCS), released Nov. 15 by Canada Mortgage and Housing Corporation (CMHC).

In addition to affordability, other “must haves” for homebuyers were number of rooms (73%) or proximity to public transit (67%).

The number of buyers spending the maximum amount they could afford on their home fell to 60% in 2019 from 78% in 2018.

Debt levels higher than expected

Almost one quarter of homebuyers said their current level of debt is higher than they were expecting. This number is up from 19% of buyers in 2018.

The majority of buyers (59%) reduced their non-essential expenditures since owning a home. The most common area where they chose to cut back was on entertainment (66%), vacations (55%) and food (44%).

Of the buyers surveyed, 87% were confident in the long-term financial prospects of homeownership, and their future ability to make their mortgage payments.

The CMHC’s online survey involved 1,385 recent mortgage consumers who were all prime household decision makers and had undertaken a mortgage transaction in the past 12 months. Forty-seven per cent of those surveyed were first time homebuyers, while 53% were repeat buyers.