Citing their recent survey, real estate giant RE/MAX said that over 66% of Canadian consumers agreed that 10% (or greater) is a reasonable level for home mortgage down payment.
The poll results come as the Department of Finance is contemplating on their housing market recommendations, which would involve, among others, a graduated pay scheme of up to 10 per cent of a home’s value and a greater responsibility on the part of the banks to absorb insured losses on homes.
RE/MAX said that these proposals will have only minimal effect on consumers outside of Toronto and Vancouver, where average prices are expected to increase by 5 per cent and 7 per cent, respectively.
“However, in Vancouver and Toronto, where entry-level homes are often above the $500,000 threshold, these restrictions may be discouraging to some potential buyers,” the real estate company said in a statement, as quoted by Financial Post
RE/MAX added that these projections are starting to spill over into surrounding municipalities beyond the urban sprawls of Toronto and Vancouver. Prices have reportedly increased by 8 per cent in Barrie, 10 per cent in Fraser Valley, 12 per cent in Hamilton-Burlington, and 13 per cent in Victoria.
Meanwhile, concerns over slow sales and a sharp drop in petroleum prices has led RE/MAX analysts to estimate a 4 per cent decrease in Calgary prices next year, along with a 3.5 per cent drop in Edmonton.