Feeling existential dread when it comes to owning a home in Canada? You’re not alone.
According to a recent survey of Canadian first-time buyers, 67% of those that purchased a home within the last two years said that before buying, they worried they might miss out on the property they really wanted because of an insufficient down payment.
The last few years we’ve seen the market shift from a buying frenzy between 2020-2021, with the pandemic plummeting home prices and bringing people away from major cities and into the suburbs with the increase in remote work, to a screeching halt when interest rate hikes began in 2022, the most recent of which occurred last mont bringing the Bank of Canada interest rate to 5%.
Most potential home buyers are citing one of 3 reasons why they feel they will be unable to buy a home this year:
- High Interest Rates.
- Strict Mortgage Qualification Standards.
- Difficulty Saving for a Down Payment.
So what do you do if you feel these barriers apply to you but you also view homeownership as a worthwhile achievement & investment in your future? Get informed.
Don’t let fear stop you from investigating your options when it comes to homeownership. Too many people take themselves out of the running before they even know what’s actually needed to become a homeowner.
Taking the right steps to educate yourself on what’s needed to achieve your goal of homeownership will get you closer to your goal, even if the answer is that it’s not in the cards for you right now.
Here’s what we recommend:
- Talk to a qualified mortgage broker to get a real sense of what you can qualify for. Don’t rely solely on free online calculators or the mortgage advisor at your financial institution.
- Talk to a Realtor who is familiar with the areas you’re interested in and get their opinion on up & coming neighborhoods that may be in your price range.
- Remember that as a first-time homebuyer you have access to certain incentives & government support options like the First-Time Homebuyer Incentive, The Home Buyers Plan, & Land Transfer Tax Refunds.
If after exploring your options and educating yourself, homeownership still isn’t in the cards for now, at the very least you have a better understanding of what goals you need to achieve to get there!
Also remember that more than a third of first-time buyers (35%) received financial assistance in a lump sum payment toward their purchase, while a quarter of buyers (25%) received support on their monthly mortgage payments.
If you’re a first-time homebuyer in Ottawa looking for support and advice from a professional, reach out to our team on Instagram or through our contact us form. We’re always happy to help buyers explore their options and answer any questions they might have, even if buying is in the distant future.
