Over 40% of first-time home buyers in Canada can’t afford a house without their parents’ help
First-time home buyers are increasingly turning towards their parents for financial assistance in purchasing a home. The report found that 42% of participants surveyed online, expect their parents or relatives to help pay for their first home. A sharp increase up 12% from last year's report.
A recent "Home Buying Report" conducted by one of Canada's big banks suggests first-time home buyers are increasingly turning towards their parents for financial assistance in purchasing a home. The report found that 42% of participants surveyed online, expect their parents or relatives to help pay for their first home. A sharp increase up 12% from last year's report.
Home prices in Canada have been steadily rising since 2009, resisting regulators' efforts to cool down the market by making lending criteria much more strict. Re/Max, one of the country's largest residential real estate agency, raised its forecast for home price growth to 3%, up from their initial 2.5%, because transactions and values were so high for the first three months of 2015.
The study found that most first-timers had a budget of $312,700 for their home, down from last year's average price of $316,100. Their expected down payment however, was much higher than the minimum 5% required by mortgage insurers, with an expected down payment of just under $60,000.