More And More First-Time Home Buyers Are Getting Help From Family To Cover The Down Payment.
More than a third of homebuyers in the GTA were given a lump sum payment from parents or relatives to purchase their first property and nearly 75 per cent of first-time homebuyers in the GTA worried that their down payment would not be enough, according to a new survey.
The survey results, which were released Thursday, looked at key trends among first-time homebuyers who bought a residence within the last two years.
The biggest hurdle first-time homebuyers face is coming up with a substantial down payment. Using the ‘bank of mom and dad’ for a top-up on a down payment is not uncommon. First- time buyers in the GTA are often dual-income couples in their thirties.
According to the survey, 36 per cent of first-time homebuyers in the GTA say they received a lump sum payment from parents or relatives to purchase a home.About 29 per cent said they received financial help with their monthly mortgage payments.
Forty-four per cent of first-time homebuyers in the GTA said the financial assistance they received was a gift.
About 29 per cent of first-time homebuyers in the GTA said they purchased a home in a different neighbourhood or region than they had originally planned due to affordability issues and 37 per cent said they purchased a smaller home than they had planned.
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.
Still, they continue to prioritize home ownership, and view it as a milestone worth achieving. Most buyers surveyed were prepared to settle for what they could afford in order to get into the market.
If their down payment will not get them into their dream home, most buyers are prepared to settle for a smaller property or a condo in order to build equity towards an eventual move- up home.
According to the Toronto Regional Real Estate Board, the average price of a home in the GTA reached $1,196,101 in May up from $1,153,269 one month earlier.
