Nearly six out of 10 (57%) first-time home buyers in Canada said that they are worried about not being able to buy the residential property they wanted because of an insufficient down payment, according to a new survey by Genworth Canada (in collaboration with Royal LePage).
This phenomenon was especially apparent in Toronto, with 68% of respondents in that market voicing out a fear of missing out due to issues with down payment.
Also, despite higher housing prices in Vancouver, Montreal’s first-time buyers expressed more anxiety about their down payment stashes’ ability to get their desired homes (58% of respondents in Vancouver and 60% in Montreal).
“While interest rates remain historically low, it is not surprising that first-time home buyers in Montreal are increasingly concerned about their down payment,” Royal LePage president and CEO Phil Soper said.
“Montrealers have been watching home values escalate over the past three years. Many are wondering if they have time to grow their down payment or if they should get in the market now as prices continue to rise.”
For almost half of Canadians (48%), nearness to work is a crucial component of their preferred homes, saying that they would rather live in smaller residences if it means that the home-to-work trip is at a minimum.
Firs-time buyers in Calgary (53% of respondents) and Montreal (52%) particularly valued this attribute. In Toronto (59%) and Vancouver (54%), the travel times to and from work (34 minutes and 30 minutes, respectively) have made proximity an especially attractive feature.
“Even in cities where first-time home buyers have to push themselves to get on the property ladder, cost isn’t the only consideration when buying a first home,” Soper added. “While some young people are relocating to more affordable cities, those who stay value shorter commutes and access to the benefits of city life.”