A report from the Canadian Association of Accredited Mortgage Professionals found that 45 per cent of the 620,000 homes sold across Canada in the past 27 months were purchased by first-time buyers.
Most are between 25 and 34 years old, were typically employed full-time and confident about job security. Almost two-thirds believe that a mortgage is “good debt.”
However, the report also shows that borrowing from friends, family and credit cards is on the rise, especially among first-timers, with $10 billion annually borrowed to meet downpayments.
As home prices have been rising, first-time buyers have struggled to save fast enough to keep up, leading to desperate measures.
The report shows that first-timers borrow, on average, 85 per cent of their new home’s value, including the mortgage.
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First-time buyers are driving the housing marke,t but are increasingly turning to credit to afford the downpayment on a new home.