This is the homebuyer of the future…
This past June, Mortgage Professionals Canada published their survey results on the Next Generation of Homebuyers.
Take note: Adults under the age of 40 who don’t currently own a home but expect to own in the future, if you are planning on buying, or help a child get into homeownership, these results can be an interesting comparison to your own situation. Here are some of the key findings:
- 52% are under 30 years old, 48% aged 30 to 39
- 55% single, 39% married/living with a partner
- 81% have no children
- 72% agree that mortgages are good debt, and 76% agree real estate is a good long-term investment. 58% are optimistic about the economy in the next 12 months.
- The decision to buy is often influenced by key life events – start a family (33%), getting a promotion/raise (30%), getting married (29%), inheritance (8%).
- Primary downpayment sources are personal savings (73%), gift/loan from a family member (36%), TFSA (33%) and RRSP (29%).
- Average downpayment savings is $37,000 among imminent buyers.
- Neighbourhood (61%), safety (58%), and potential for increase in value (50%) are the most important home features. Features that are considered to be worth a premium are nice neighbourhood (33%), short commute (31%) and safety (29%).
Continue reading “Mortgage Brief… Homebuyer of the future.”
And it begins in Vancouver… the long-awaited, little debated foreign property tax is about to begin.
Foreigners wanting to buy in Vancouver will need to add 15% to the purchase price.. Put another way, this adds $150,000 to the purchase price of a $1,000,000 property.
The new tax begins August 2nd. The provincial BC govt says they want to ensure that home ownership remains within the reach of the middle class. And if it doesn’t then, they say, it has created a new revenue stream.
MY THOUGHTS… Continue reading “Mortgage Brief…BC’s 15% Foreign property tax coming to Toronto?”
This week, the Bank of Canada Governor, Stephen Poloz, held rates steady. No increase or decrease. click here for BoC report.
The Bank of Canada meets 8 times a year, at preset meeting dates. The Target Rate is used by Canadian Banks to set their Prime rate. This also affects Variable rate mortgages and even influences short term rates.
Bad news is good news for mortgage rates. Inflation is under 2% (well below the 3% max that is needed before rates climb).. And the Canadian economic outlook is still not strong enough to support a potential rate increase.
So, for now, enjoy the low rates… actually, they’ll probably be around for a lot longer..
Remember, we are experiencing record low rates.. but this doesn’t mean we should all jump into a 5 yr fixed rate product.. We all have different wants, needs and goals.. Speak with a Mortgage Broker to get professional advice.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis 416 224 0114 firstname.lastname@example.org