While Scotiabank estimated the new rules took a 10 per cent bite out the homebuying pool, the Bank of Montreal suggests that last summer’s changes didn’t upend too many first-time buyers’ timelines for home ownership.
According to the BMO Economics survey, 66 per cent of first-time buyers in Canada said changes have not affected their timeline for buying their first home. One-in-five (19 per cent) said the changes have prompted them to wait longer to buy, while 14 per cent will buy sooner.
The report placed the average amount first-time home buyers plan to spend at approximately $300,000, with an average down payment amount of $48,000 (16 per cent).
Ontarians mostly appeared to be non-plussed by the new mortgage rules, with 76 per cent (the most out of all the regions) saying that the mortgage rule changes will not affect their home ownership timeline.
It was a different story out west: British Columbia residents are the most likely (33 per cent) to hold off on the big financial decision because of the measures.
The mortgage rules appeared to create some sense of urgency in a few parts of the country with the people of the Prairies and Quebeckers being the most likely (19 per cent) to speak up their plans for buying a home.
“While Canadian home sales weakened markedly at the time of the mortgage changes a year ago, they have since stabilized and have even partially recovered in recent months,” said Doug Porter, Chief Economist, BMO Capital Markets, in the news release.
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