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.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Cadillac, Upper Kennetcook, Lacombe County, Carleton, Highlands
First-time buyers are driving the housing marke,t but are increasingly turning to credit to afford the downpayment on a new home.