According to the BMO 2014 First-Time Home Buyers Report, the average budget for first-time homebuyers in Canada is now $361,100, up from $300,000 in 2013.
The report, released on March 18, found that buyers have had to make budget increases to accommodate rising home prices. Of those surveyed, 30 per cent indicated that they are expecting financial help from parents or family members when purchasing their first home. In Montreal and Vancouver, that percentage increases to 40.
“High prices in a few major cities, and the fact that prices are outrunning incomes in Toronto, are turning off some first-time buyers, while forcing others to go deeper into debt, tap their parents for hefty down payments, and opt for a condo rather than a detached house,” says Sal Guatieri, senior economist at BMO Capital Markets.
The report also found that:
- 61 per cent of first-time homebuyers are making lifestyle sacrifices in order to save for their home.
- 60 per cent are delaying the purchase of their first home and, of those, 39 per cent cite rising home prices as their main reason.
- 60 per cent are planning to set fixed budgets with maximum prices.
- One-third of respondents are willing to break budgets for the right homes.
Results, compiled by research firm Pollara, were gathered from a random sampling of 513 first-time Canadian homebuyers, age 18 and over.
