41 per cent of first-time homebuyers in B.C. borrow money from family: Report | 24CA News
First-time house purchasers in B.C. are more and more fearful they may miss out on shopping for a house they need because of monetary constraints, in response to a current report.
The report and survey, which Environics Research and Roal LePage carried out, took a have a look at a variety of key traits amongst Canadian first-time homebuyers, who purchased a house throughout the final two years.
“Canadians continue to face challenges in entering the real estate market, be it high-interest rates, strict mortgage qualification standards, or difficulty saving enough money in a reasonable time period for a down payment,” mentioned Phil Soper, Royal LePage’s president and CEO.
“That first transaction is probably the most troublesome, and in right this moment’s setting, first-time patrons are confronted with giant worth tags, excessive carrying prices and the added problem of qualifying for lending at larger charges as a result of stress check.
B.C. first-time homebuyers ranked primary within the nation for “most worried” with reference to lacking out on the house they needed because of not having sufficient for a down fee saved.
More than 40 per cent of first-time homebuyers mentioned they leaned on their households to assist them, with 19 per cent saying they nonetheless obtain assist with mortgage funds, which jumps as much as 26 per cent for the Greater Vancouver space.
“Today’s first-time homebuyer faces elevated property prices and rising interest rates, factors that are prolonging their inability to get a foot on the property ladder,” mentioned Shawn Webster, a Royal LePage gross sales consultant.
“There is a lot of anxiety about having enough money saved for a down payment. Young people are living with their parents longer and are making other concessions to build up their savings as much as possible.”
According to the survey, 72 per cent mentioned they have been fearful their down fee wouldn’t be sufficient to get the house they needed.
“Parents are far more financially involved in the home purchase process than they used to be; it is rare to meet a buyer who is able to get the necessary funds together on their own without outside help,” Webster mentioned in a launch.
“Often, we see adult children receiving gifts of upwards of $100,000 towards their home purchase,” mentioned Webster.
“First-time buyers struggle to afford detached homes, so smaller strata units are more likely to be within their reach.
“Young people still prefer to own property in walkable communities that are close to amenities, though buyers who don’t have the option to work remotely must be more flexible about their location.”
Low stock in B.C. continues to pose a problem for first timers, as they’re pressured to compete with current owners:
- 25 per cent mentioned they needed to pivot to a unique, extra reasonably priced neighbourhood than initially deliberate
- 32 per mentioned they needed to buy a smaller house than initially deliberate
- 9 per cent mentioned they needed to search monetary assist from household and buddies
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