First-time Buyers with Help from Family not Feeling so Confident about Their Debt

The Canadian real estate market was pretty bad last year with one-fifth of first-time buyers who were able to make down payments for their homes receiving help from either their parents or family members.
A survey carried out by the federal housing agency noted that one in five first-time buyers was able to buy a home with some form of financial aid.
For the first time, the Canadian Mortgage and Housing Corporation conducted a survey on how first-time buyers are able to make down payment as part of their annual mortgage consumer survey.
However, it was also noted that first-time buyers who received help from their family are less confident about their finances and debt ratios. They will also find it difficult to pat their mortgages.
Similarly, first-time buyers who received help from their parents will also find it difficult to seek for help in an event they encounter any financial challenges as they have already received help from their parents and family to make down payment.
However, 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 especially for first time buyers who found it very difficult to enter the real estate market as several measures taken by the government to curb market prices have left them out of the market.
As a way to put the market under control, the government introduced strict mortgage regulations that implied 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 to other affordable markets, 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.


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