The Canadian real estate home prices have been rising beyond limits with many housing spectators coming up with various reasons influencing the home prices and the effects housing affordability has on buyers. One of such claims was that first-time buyer’s participation in the housing market has gone down as a result of rising prices.
However a new report for Mortgage Pros Canada proves that this assumption is far from true. According to statistics compiled by the national mortgage industry association’s chief economist William Dunning, first-time buyers have high home values and many are incurring debts to make down payments for their homes.
Don-payment by first-time buyers reaches record high regardless of soaring home prices. From the look of things, first-time buyers are making pouring more money into the housing market than ever. From 2014-2016, first-time buyers recorded a 23% down payment, topping the 22% made in 1990.
Unfortunately figures were not taken from individual markets but from the outlook of things, the overall real estate market is appealing.
First-time buyers are coming up with alternative measures to make their down payments. While most of first-time buyers make use of their personal savings for their down payment, other goes through financial institutions. But the most common trend for first-time buyers is the “Bank of Mom and Dad”. This prompts questions as to how parents are able to come up with the finances.