A majority of recent homebuyers say they couldn’t have purchased their home without help covering the down payment, according to new research from Mortgage Professionals Canada.
Among buyers in the past two years, 70 per cent say they couldn’t have bought their home without financial support.
The findings highlight a housing affordability system under pressure, as more Canadians turn to family gifts, loans and other outside support to enter the market.
The insights are from Mortgage Professionals Canada’s annual State of the Housing Market survey, conducted by Bond Brand Loyalty earlier this year. The poll of 2,000 Canadians shows a growing divide in access to home ownership
“Down payment assistance is no longer a backup plan—it’s a requirement for many Canadians hoping to buy,” said Lauren van den Berg, president and CEO of Mortgage Professionals Canada.
“These findings confirm what brokers across the country are seeing every day: consumers are under pressure, and they need expert, transparent advice to find a way forward.”
Regional variance
Of people who bought a home in the past five years, 42 per cent said they were able to purchase without help with the down payment.
The share of self-funded buyers was smallest in British Columbia at 34 per cent, followed closely by the Prairies (37 per cent) and Ontario (38 per cent).
Quebec had the greatest share of homebuyers who didn’t need help at 51 per cent, followed by Atlantic Canada, at 47 per cent.
“Of people who bought a home in the past five years, 42 per cent said they were able to purchase without help with the down payment.”
Yeah…. because you had help from the bank of mom and dad for the first home you bought for $250k and sold for $700k 5 years later… that’s the only reason.
They do not need expert advice to move forward. They need money. With values so high what jobs are there that pay anyone young person enough money for a down payment? With rents so high how can an individual save any money for a down payment? They simply cannot. For those 42% that could. I would bet that they inherited some money for a down payment. That stat is not available. Less then 2% of young people will be able to purchase a home based on their earnings and ability to save money. Or they are professional athletes that just signed a multimillion dollar contract. This is the separation of society. Those that have, and those that do not. Anyone that purchased a home over 5 years ago should be fine. Those that have one or possibly two properties will be fine. The real economists say that for any real recovery in Canada real estate values have to come way, way down. And it seems that is the direction they are heading now.