A fresh study from a headlining mortgage information portal revealed that in the midst of challenging economic conditions, first-time buyers in B.C. are resorting to parental funds to gain assistance.
RateHub.ca, in a recent cross-country survey, discovered that about 42 percent of B.C’s new buyers increased their payments through family financing, a reasonable step in a province where the average price for a home was at $625,871 in December 2016.
According to the company, this new trend will not disappear anytime soon, particularly due to the grave impact of the latest extensive changes to mortgage qualification rules.
“RateHub is expecting the bank of mom and dad to have a record year in 2017,” the report stated,
RateHub’s forecast has been supported by other observers who believe home owners have a rougher year ahead of them.
Robert McLister, RateSpy.com founder and intelliMortgage planner, cautioned that the stricter stress test implemented by the new mortgage rules will cause 20 percent of new buyers to quit their property purchase plans in their chosen cities.
The issue of stagnant income growth has further proven to be an obstacle to many young professionals’ efforts to buy homes.
Paul Taylor, Mortgage Professionals Canada president and CEO, in a joint analysis statement released December, said, “The math quite simply says incomes have not risen at all in comparison to house prices. It’s taking longer and longer for those first-time buyers to amass the means for a down payment.”