A new survey suggests that first-time home buyers in Canada will rely on family members for financial help in getting that first house. The sampling of public opinion was conducted for one of Canada’s major banks, BMO. It found that 56 per cent of new buyers would seek assistance from family, and on average they would seek more than $44,500. The average price of a Canadian home sold in September 2020 was $604,000, according to the Canadian Real Estate Association. That was up 17.5 per cent from the same month last year.
Buyers in the provinces of British Columbia and Ontario are most likely to look for family help. That reflects the fact that the most expensive housing markets are in Vancouver, British Columbia and Toronto, Ontario. The average price for a house in Greater Vancouver was j$1,041,300 in September 2020. In Greater Toronto, it was $897,700. (Average prices across Canada are listed by the Canadian Real Estate Association.)
Millennials more likely to need help, to need more
Millennials (aged 24-39) are more likely to seek help than are Gen Xers (aged 40-55), according to the survey. Overall, of those seeking assistance, one-quarter are looking for between $10,000 and $50,000. Millennials are seeking the most. On average they would ask for $100,000 or more.
The current pandemic is influencing the type of mortgage that first-time buyers choose, say respondents . Because of the uncertainty, 57 per cent say they will seek a fixed rate mortgage. Only eight per cent would seek a variable rate mortgage. Interest rates for mortgages are currently at an historic low.