First-time homebuyers in B.C. increasingly anxious over insufficient down payments

In B.C., 71 per cent of first-time buyers expressed concern their downpayment will fall short of getting them the home they want compared to 56 per cent two years ago.

A Royal LePage real estate sign is marked "Sold" in front of a house in Ottawa.A Royal LePage real estate sign is marked "Sold" in front of a house in Ottawa. PHOTO BY CHRIS WATTIE /REUTERS

Article content

Canadian first-time buyers in an ever-intensifying housing market are increasingly worried about missing out on a property because they can’t make the down payment, according to a new survey.

The survey, released Friday by Royal LePage and residential mortgage insurance provider Sagen, found first-time homebuyers across Canada, except for Alberta and the Prairies, reported higher levels of anxiety compared with 2019.

In B.C., 71 per cent of first-time buyers expressed concern that their down payment will fall short of getting them the home they wanted compared with 56 per cent two years ago.

First-time buyers in Vancouver weren’t far behind, with 69 per cent reporting feeling worried that an insufficient down payment might cause them to miss out on buying a home — higher than the national average of 62 per cent, and 11 points higher than in 2019.

“The hurdle causing anxiety for first-time homebuyers is saving for a down payment in an environment of rising home prices in many parts of the country,” said Stuart Levings, president and CEO of Sagen, in a news release. “While some have parents who can step in, many do not and they are struggling to get into the market.”

Advertisement

 
STORY CONTINUES BELOW
 
This advertisement has not loaded yet, but your article continues below.

Article content

The survey found 25 per cent of respondents said they lived with parents or relatives before buying their first home. This figure is higher for Vancouver respondents, at 31 per cent, and B.C., at 28 per cent.

About half of those who lived with family paid rent. Among those who lived with their parents before buying their first home, 15 per cent said their living at home caused their parents to delay downsizing plans.

The federal First-time Home Buyer Incentive recently increased its income threshold from $120,000 to $150,000 in Toronto, Vancouver and Victoria in an effort to give first-time buyers in these three cities a better shot at entering the market.

Related:Here’s what a $1 million home looks like in Metro Vancouver

Despite the pressure and anxiety that comes with buying a home, there is still a strong appetite to enter the market, said Adil Dinani of Royal LePage West Real Estate Services.

Condos are popular for first-time homebuyers. And the pandemic, which allows for remote working, has prompted some first-time buyers to look beyond Metro, said Dinani. Kelowna and other parts of the Okanagan have seen strong demand.

The survey, completed by Environics Research, interviewed 909 Canadians aged between 25 and 40 who had bought their first home within the last two years. The online interviews were conducted in February and March.

chchan@postmedia.com

twitter.com/cherylchan

 
 

Share this article in your social network

 

LATEST NATIONAL STORIES

Daily horoscope for Sunday, May 16, 2021

There are no restrictions to shopping or important decisions today until 11 PM Pacific time. The Moon is in Cancer

15 minutes ago Horoscopes
Sunday_horoscope

Hugs are coming back. Not everyone is thrilled.

'I didn't mind it. I'd have preferred we didn't'

8 hours ago World
A woman offers “Free Hugs” at the corner of Yonge Street and Dundas Street in Toronto amid the COVID-19 pandemic, Sept. 3, 2020.

Advertisement

Lawson Lundell supports its people and the community

One of BC's Top Employers in 2021

Sponsored by BC’s Top Employers 2021
BC’s Top Employers 2021

Focus on equity, access when reopening outdoor recreational sites in Ontario: advocates

'It's quite disappointing that there's been such advocacy around a sport like golf'

10 hours ago Canada
Sporting activities continue as normal at Ramsden Park in Toronto on Thursday May 13.

There’s no hidden U.S. vaccine stockpile ready to send abroad 

The globe needs billions of vaccines, not millions, and the places that are in crisis now may burn through their outbreaks before help could arrive

10 hours ago World
The jumbo center in Mumbai suspends its shots before supplies came in.

Israeli airstrikes topple Al Jazeera and Associated Press offices in Gaza as violence escalates

Palestinians medics say at least 139 people, including 39 children, have been killed in Gaza since the conflict erupted on Monday

14 hours ago World
A tower housing AP, Al Jazeera offices collapses after Israeli missile strikes in Gaza city on May 15.
 
Read full post
Categories
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.