Gen Y hurdles
This week, a TD Canada Trust poll of some 6,000 Canadian adults revealed it’s harder for Gen Y, or Millennials, to get into the market than 30 years ago. Not a great finding when you think of the societal pressures to own a home and the negativity around renting.
Roughly half of Gen Y non-homeowners say prices are way too high, compared to 16 per cent of Boomers. Slightly more than half of Millennials also say they are concerned they won’t be able to save enough for that first down payment, the survey showed. Furthermore, nearly half feel they aren’t earning enough to pay their mortgages versus some 13 per cent of Boomers.
Know your finances
That is a rarity at a time when household debt is at record levels. Last summer, the federal government tightened mortgage-lending rules — the fourth in as many years — to cool the country’s housing market on concerns it was getting frothy, while also forcing Canadians’ to get a grip on their debt.
But the reality is the situation is different for everyone.
One recent survey showed there’s a rise in the number of first-time buyers who are slapping down more than 20 per cent for their down payments. Another noted Canadians planning to buy their first home in the next five years plan to spend about $300,000, with an average down payment amount of $48,000, or 16 per cent.
Knowing exactly how much you can afford and what sacrifices you may need to make as a homeowner to live comfortably, and continue to save for your future, is key before leaping into the market.