Buying a home is becoming harder for young Canadians. Canadians who are just joining the workforce or have been there for a little while are finding it difficult to buy a home because of mortgage regulation and sky high house prices.
Apart from price and mortgage qualification another hurdle is down payment for generation Y – according to a National survey conducted by Royal LePage. Only 27% will arrange their down payment from sale of their existing property whereas majority (2/3) will have to cash their RRSP, savings and seek out gifts to arrange the down payment.
Despite of the fact that people are finding it difficult to become a homeowner – they still think that housing is a worthwhile investment – the survey indicated.
The young buyers who are going to buy their first home are facing challenges posed by the new mortgage regulation.
What we can learn from this survey that there is a large number of willing buyers who will eventually overcome all the challenges and become a homeowner. There is no shortage of demand – just getting a bit delayed due to various adverse conditions.