First-Time Buyers Receiving Help From Parents To Buy Homes

Getting a home as a first-time buyer is next to impossible in the hot Canadian real estate market hence home prices is also taking a toll on the finances of parents as many first-time buyers are now seeking financial aid from their parents to buy their first home.

A recent survey shows about 42% of first-time buyers receive financial aid from their family to be able to make a down payment for their homes.

With the average home price at $625,871, British Columbia according to the British Columbia Real Estate Association has become the most expensive province in Canada in terms of real estate.

However, by the end of 2016, home prices declined as the government had earlier on put in place new regulations to address the hot home prices.

In a survey conducted by Ratehub, com to determine the number of first-time buyers receiving help from their parents, it was discovered there was roughly 45% received some sort of financial support from their families between September 20016 to November 2016.

Many first-time buyers that have already saved 5% to buy a home stand the chance to get a loan from the federal government. Canadian banks can also give out loans to buyers with a 20% down payment.

But for many Canadian buyers, they require financial help to be able to make down payments and according to reports from RateHub, the bank of parents are expecting to increase this year as home prices is forcing many young adults to seek parental help.

Although Quebec is a much affordable housing market than British Columbia, first-time buyers are also faced with challenges and 45% of buyers get financial aid to buy a home whereas 45% of buyers were also able to come up with the 20% down payment on their own.

In Ontario, 38% of buyers also sort help from their family to make the down payment.