Canadian First-Time Buyers Needed Their Parents Help for Down Payments

First-time buyers in Canada, go through a lot of trauma and financial constrains when trying to land their first home. Last year was a very tough one for first-time buyers as home prices in major real estate markets were just outrageously exorbitant, 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 had gained the support of their parents or family members, they were able to secure homes of their own. The unfortunate ones, had to put aside their dreams and settle for temporary renting until they can save enough for a down payment.

The Canada Mortgage and Housing Corporation observed in its yearly mortgage consumer survey that about 18% of Canadian first-time buyers got help from their parents to make down payments for homes. The results from the inferences also revealed that majority of first-time buyers who received help, felt less confident than other buyers who paid for themselves. It did not come as a surprise that many first-time buyers resorted to renting before being able to make down payments for their individual homes with 64% of first-time buyers owing up to this fact. Results from the survey also discovered 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.

Buying a home for the first time in Canada’s leading real estate markets is no longer an easy task, though many first-time buyers are now holding up their chances of owning their homes because the cost of possessing a home is way above their household income.

Therefore several first-time buyers are making use of other living arrangements till they can make their down payment.

J C Loum