The challenge of a down payment on a house in Ontario

There’s nothing quite like the satisfaction that comes from buying your first home. For many prospective buyers, however, the process can be really challenging.

But what is the biggest obstacle facing first-time homebuyers in today’s market?

Although an increasing number of Canadians are generally upbeat about their chances of buying their first homes, a significant number consider the down payment to be the biggest barrier to owning a home. With a standard mortgage, borrowers are normally expected to pay some of the upfront costs of buying a home.

According to a recent poll conducted by Pollara Strategic Insights on behalf of the Bank of Montréal, up to 26 percent of first time home buyers claimed that they find raising the down payment the single “greatest” problem, with 39 percent claiming that it is the “least” of their worries.

Additionally, just 14 percent of potential first-time buyers are currently ready to make a down payment, while 55 percent expect to raise their down payment within two years. Approximately 38 percent expect to be free of debt before their first home purchase.

Although first time home buyers tend to think that conditions are improving for first time home buyers in most markets across the country, it is crucial to ensure that the costs involved are sustainable.

Around 13 percent of prospective first time home buyers say that they are looking to buy a home priced at more than 30 percent of their net incomes, while almost 40 percent are willing to forgo their other commitments in life like travel in order to purchase more expensive properties.

The newly-launched Federal First Time Home Buyers Incentive is some great news for first time home buyers! Among young people aged 30 and above, up to 50 percent actually believe that it will help them make their first home purchase.  Overall, up to 86 percent believe that the incentive can help them realize their dreams of someday owning a home.

Contact our Meaford mortgage brokers today to help you get all your mortgage needs in order to get the best possible rates and mortgage for you and your family.

Call today: Tel: 1-866-526-0066