There was a rise in both the share of first-time homebuyers in British Columbia who got help with their down payment and the value of that help.
With rising home prices challenging prospective homebuyers, the bank of mom and dad was in high demand. Overall, 83% of BC’s first-time buyers got help with their down payment according to the BC Notaries Association poll.
When asked how much of the down payment is coming from parents, 42% of Notaries said their clients typically get less than 25% of the down payment and the same share said their clients typically get 25 to 50% of the down payment. 16% get more than half from their parents.
At the end of 2015, BC Notaries said that 57% of first-time buyer clients were typically getting help and most (52%) said that parents typically provide less than a quarter of the down payment amount.
“Our annual BC Notaries Association Real Estate Report offers important insights into our members’ knowledge and experience with real estate in communities all across B.C.,” said Jacqui Mendes, CEO, BC Notaries Association. “BC Notaries are highly-trained in both simple and complex real-estate transactions and provide conveyancing or other legal services on over 70% of all residential real estate transactions province-wide. Many Notary offices handle hundreds of transactions for buyers and sellers each year and have exceptional insights and expertise to share.”
Mortgage, interest rates are impacting homebuying
In line with other data, the BC Notaries said that mortgage lending restrictions and rising interest rates are among the top 3 factors impacting real estate in their communities.
Mortgage restrictions made the top 3 for 121 of the 173 notaries, rising interest rates were cited by 97, and lack of supply was mentioned by 55.
Of lesser importance were the foreign buyers tax, speculation and vacant homes tax, money laundering, and other factors.
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