The average first-time homebuyer in Canada expects to spend about $300,000 on their first home with a 16 per cent down payment ($48,000), according to a new poll from the Bank of Montreal.
But, as you would expect, expectations vary greatly between provinces.
The bank’s findings also reveal first-time buyers plan to be mortgage free in 20 years, with 20 per cent estimating it will take between 10-19 years.
Meanwhile, two-thirds of first-time buyers say the latest changes to mortgage regulations — which included reducing the maximum amortization for government-insured mortgages to 25 years from 30 years — have not affected their buying timeline, while 19 per cent of respondents say they will have to wait longer before wading into the market.
Additional findings from the BMO survey:
- 63% of first-time buyers have made cutbacks to their lifestyle to save for their first home, with just 27% expecting their parents or other family members to help them pay for their first home
- 59% of first-time buyers have had to hold off buying their first home because of increasing housing prices
- 59% of first-time buyers wish they had bought their first home five years ago
To conduct the poll, BMO surveyed 2,000 Canadians 18 years or older, between February 25th and March 5th. The bank says its data was weighted by region gender, and age, based on the most recent Census figures, to representative of all adult Canadians.