The real estate market of Canada was very bad last year with only one-fifth of first-time buyers who were able to make down payments for their homes, getting help from either their parents or family members.
The federal housing agency carried out a survey and noted that one in five first-time buyers was able to buy a home with some form of financial aid.
The Canadian Mortgage and Housing Corporation for the first time, conducted a survey on how first-time buyers are able to make down payment as part of their yearly mortgage consumer survey. On the other hand, it was also noted that first-time buyers who received help from their family were less confident about their finances and debt ratios.
Equally, first-time buyers who got help from their parents will also find it difficult to seek for aid in the event they encounter any financial challenges. Nonetheless, first-time buyers cannot be blamed for feeling this way or even taking such actions.
The real estate market last year was a very tough one, most especially for first time buyers who found it nearly impossible to enter the real estate market as several measures taken by the government to control market prices have left them out.
The government introduced stringent mortgage regulations as a way to put the market under control. These measures inferred that consumers are to undergo a stress test to determine if they will be able to repay their loan in an event of slight changes to interest rates.
The Canadian Mortgage and Housing Corporation conducted the survey on 3,002 consumers.
Other first-time buyer who were not so fortunate to receive help from family members or their parents, resorted to other options such as renting, moving in with friends or family or making down payments with a friend or family.
Some who could not make use of these alternatives, decided to hold on to buying a home until they are able to save enough to make down payments.