Many Canadians are seeking financial help from friends and family to get into the housing market, says a new report released by BMO.
Conducted by Pollara Strategic Insights, the report found that more than one quarter of first-time homebuyers are seeking a financial gift between $5,000 and $50,000 to help finance their first home purchase, while over 10 per cent are looking to receive $100,000 or more.
Across the country, first-time buyers in Atlantic Canada expect to pay the lowest average price at $326,700, whereas buyers in Ontario and British Columbia are planning to pay at least $100,000 more ($443,705 and $445,294, respectively).
"Up against external headwinds, parents and family members are being asked to help first-time buyers enter the real estate market. While a financial gift can help, a home financing solution that fits a homebuyer's budget is equally important," said Hassan Pirnia, Head, Personal Lending and Home Financing Products, BMO Bank of Montreal. "It comes down to ensuring that the homebuyer can sustain the costs of homeownership on their own. What can help is coming in to speak with a mortgage specialist – they will assist new homebuyers navigate through the various home financing options and, together, come up with a plan that fits their financial situation."