VANCOUVER (NEWS 1130) – High housing prices have resulted in a large share of first-time home buyers receiving family money to help make their down payment. A survey by the federal housing agency finds 18 per cent of first-timers were given a gift from a family member.
However, those who received such money also show more signs of financial stress. The Canada Mortgage and Housing Corporation says first-time buyers who received money from their family “were less likely to have other assets to supplement their needs, and were less confident about knowing where to turn in the event that they run into financial trouble.”
About one-in-three first-time buyers, or 34 per cent, say they lived with family members before purchasing a home. The rest were renters.
The CMHC survey also finds 20 per cent of respondents say the latest mortgage qualification changes affected their purchase decision. Only about half of buyers were even aware of the changes.
Mortgage Consumer Survey -- CMHC
The online survey involved 3,002 people who had a mortgage transaction in the 12 months to March. Two-thirds were renewals. Home purchasers were 20 per cent of the group while 15 per cent were refinancing.