How much are you planning to spend on your first home? How much are you going to put down, and how long do you think it’ll take you to be mortgage-free? You might be surprised by the statistics, but Kamloops mortgage brokers aren’t.
The Home Buying Report just released by BMO paints a portrait of the new first-time home buyer in Canada, and in BC, that picture is pretty different.
The report shows most people buying a house in
Canada for the first time expect to spend $300,000 on their first home. In Ontario, buyers expect to spend $392,962. What about BC? The average house price people expect to spend on their first home in BC is $529,922!
So, if you’re buying a house in BC and you’re getting a mortgage from a Kelowna mortgage broker for $529,922, what’s your down payment? The BMO report says most buyers are putting down 16%, so in BC, that’s $84,787! The Canadian average? It’s $48,000.
“It’s crucial that those planning to enter the market are well prepared—not only to manage their costs, but also to pay off their mortgage as soon as possible,” said Laura Parsons, Mortgage Expert, BMO Bank of Montreal.
“Determining what your mortgage payments and overall costs of home ownership will look like, and then living in that financial reality for a year before entering the market, can be an effective strategy.”
Housing prices in BC mean nearly 60% of first-time buyers have had to hold off buying their first home, and six in 10 people are making big lifestyle cuts to save for that first home.
Some other interesting findings from the report:
- Mortgage-free in 20 years or less. Even though people buying a house in BC are facing high real estate prices, the average first-time buyer expects to be mortgage-free in just 20 years, with 20% estimating it’ll take between 10 and 19 years.
- Fixed rates are preferred. If you’re entering the real estate market for the first time, the study shows you’re twice as likely to choose a fixed rate over a variable rate mortgage.
Are you looking at real estate in BC? Call the Kelowna mortgage brokers at Kal-Mor Mortgages & Investments, doing business as OneCallMortgage.ca. Headed by Vernon mortgage broker Peter Pogue, we offer fast approvals and the lowest mortgage rates. Now serving Penticton, Kelowna, Vernon, Kamloops and Salmon Arm. 1-800-567-5511