Canadian First-Time Buyers Needed Their Parents Help for Down Payments
Canadian first-time buyers go through a lot of stress and financial constrains when trying to land their first home. And things did not get any better when entering the Canadian real estate market.
Last year was a very tough one for first-time buyers as home prices in major real estate markets were just outrageous with the government introducing strict mortgage regulations which made it next to impossible for first-time buyers to enter the real estate market.
For many first-time buyers who were lucky enough to gain the support of their parents or family members, they were able to secure a home of their own while those who were not so fortunate had to put aside their dreams of home ownership and settle to renting temporarily until they can save enough for a down payment.
In its annual mortgage consumer survey, the Canada Mortgage and Housing Corporation observed that about 18% of Canadian first-time buyers used the help of their parents to make down payments for their homes.
The results from the findings also reveals that majority of first-time buyers that received help from their parents feel less confident that other buyers that made payments on their own. Furthermore, such buyers also disclosed that they will possibly be less likely be able to face any future financial constrain.
It did not come as a surprise that many first-time buyers resorted to renting before being able to come with down payments for their individual homes with 64% of first-time buyers owing up to this fact.
Results from the survey also revealed that first-time buyers had to go through countless financial debts and constrains as they try to put things in place during the process of buying a home.
Some first-time buyers had to do several repairs to their new homes and also furnish it.
Inclusive in the results of the survey was the fact that 48% of potential buyers disclosed that they would prefer using online websites to search for homes and suitable mortgage plans.
Buying a home for the first time in Canada’s leading real estate markets is no longer an easy task and many first-time buyers are now holding up their chances of owning their own homes because the cost of owning a home is way above their household income.
So for many Canadian first-time buyers, they are making use of other living arrangements until they are able to make their down payment.