First Time Home Buyers:
Get by with a little help from your friends…& family!
I was holding an open house at one of my house listings & met a young couple that were married a couple years ago & still living at his parents’ house. Their situation is not uncommon in our market as first time buyers or buyers returning to the market in New Westminster, Burnaby & Vancouver encounter the high price of purchasing Real Estate in Greater Vancouver. Their story had them trying to stay close to family without crossing a bridge. They have been looking for a few years & have found that the longer they save their money, the higher the price of the homes are & they are no further ahead than they would have been 3 years ago.
A BMO report indicates that 1 in 4 first time homebuyers need help from family to make that jump into the market. Of the 2000 people BMO sampled in BMO’s First Time Buyer’s Report, 27% expected that they would need help from family. Getting parents involved can mean more than just a financial gift. In some cases, having the parents on title & attached to the mortgage, even though the kids are making the payments, can earn you more favorable mortgage terms & rates since the bank gets to attach another party, usually with a long & positive credit history & assets.
On the opposite end of the spectrum, I have a young couple who took the leap early in life to buy & sell a couple condos & now on their latest attempt to purchase, they are considering what house to buy, anticipating that Mom & Dad will likely be moving in with them in the not-too-distant future.
Be sure to work with a good mortgage broker when you are sitting down to plan a budget for a new home. Often they have a few options that may work with a realistic budget. Once you have a financial framework, you should seek out a great Realtor to look at your housing options & explore what is available. Don’t wait too long…get out there & break your landlord’s heart….after the required 30 days notice of course.