Dominion Lending Centres Mortgage Evolution - Patricia Collins                  patricia@patriciacollins.ca | Cel: 604.996.7701 | Fax: 1.877.554.0116 | Follow Me: Facebook Facebook Twitter Tumblr

Canadian Mortgage News - Millennials | First Time Home Buyer Mortgage

According to recent studies, the vast majority of Canadians between the ages of 18 and 34 who do not currently own a home, plan to purchase one within the next five years. 

The issue facing these millennials who will want to obtain a first-time homebuyer mortgage is that most of them haven’t been saving up for their down payment. This has a larger than usual impact on their home financing options following the changes that were made to the Canadian mortgage regulations back in October 2016. 

These new rules, which include a hard-to-pass 4.64% stress test, mean that many people in this demographic won’t initially be able to qualify for the mortgage they want. This means that they will need to find ways to further cut their monthly expenses to start saving more or come up with another solution for the financing dilemma.  

Those who have not managed to save enough money for their down payment find themselves looking at two common options to save them from a financial headache – getting help from their parents, or limiting their search to “millennial-friendly” markets. The Huffington Post has created a great list of what they consider “millennial-friendly” markets, what the average home costs in those areas, and what you can expect to put down and pay monthly for those homes. 

The Canadian Mortgage Trends website has predicted that in 2017, nearly 40% of millennials will receive some form of parental support for most or all their down payment. The website also indicated that close to 20% of millennials will move back into their parents’ home initially while they save more for their future down payment.

By making the decision to own instead of continuing to rent, millennials will benefit from investing that money into their future instead of their landlord’s. Parents pulling from their equity to help their children are having a huge impact on their lives and are helping them start on their journey of home ownership! 

I will be happy to help both parents and new homebuyers in this journey, from discussing with everyone how best to structure the mortgages to save the most money and have maximum impact, to making this happen for both the parents’ new mortgage and the new purchase.  There is a lot of planning and decision making that goes into this, and I’m happy to help you and your family make this a reality!  

Whether you are a millennial looking for a first-time home buyer mortgage on your own, or a parent looking for a way to assist your children by refinancing and helping with your equity, I am here to answer any questions you have and secure the best mortgage for each of you. 

Call today at (604) 996 -7701 to schedule your free consultation! 

 

Source: https://canadianmortgagetrends.com/canadian_mortgage_trends/2017/02/8-in-10-millennials-will-buy-in-5-years.html