First-time homebuyers in Canada are surpassing U.S. first-time buyers when it comes to their down payment.
Similar to the U.S. market, home prices in Canada are skyrocketing, creating affordability problems across the country, according to a blog by Daniel Wong for Better Dwelling. Because of this rising unaffordability, the U.S. isn’t the only country where Millennials are delaying buying a home. However, a new survey from Mortgage Pros Canada shows one distinct difference between U.S. and Canadian Millennials.
According to the survey, Canadian first-time homebuyers are seeing a record amount of equity in their homes as they are putting more money down than ever.
From the blog:
Despite sky-high home prices, first-time homebuyers in Canada are putting more money down than ever. Dunning notes that from 2014 – 2016, first-time buyers averaged a 23% down payment. This is an all time high, trumping pre-1990 buyers that averaged 22%.
About 51% of these homebuyers are getting the down payment from their own savings, a high not seen since before 1990. Another 19% borrowed the money from a financial institution and 15% borrowed the money from their parents.
But while down payments are hitting new highs in Canada, they are reaching new lows in the U.S. due to the rising popularity of 3% or even zero-down conventional loans, according to an article by The Mortgage Reports.