Canada first-time homebuyers-3 Photo: triviaqueen/Flickr

Canadians will spend an average of $316,100 on their first home, according to a new report from BMO. That’s a six per cent increase from last year’s $300,000 average.

Meanwhile — and not at all surprisingly — the bank’s study found that buyers in Toronto, Vancouver and Calgary are willing to spend a considerable amount more.

Canada first-time homebuyers

The provincial average budgets for Alberta, BC and Ontario also exceeded the national benchmark.

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Which makes sense when you consider those provinces’ higher-than-average house prices.

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More highlights from the BMO study

  • 30% of Canadians expect their parents or family to assist with their purchase. However, this percentage rises to 40% in Montreal and Vancouver
  • 61% say they have made cuts to their lifestyle to save for their first home
  • 60% say their home-buying timeline has been delayed, with 39% citing rising real estate prices as the main reason for delay

According to BMO, rising prices in urban areas are causing many first-time buyers to adjust their buying plans.

“High prices in a few major cities, and the fact that prices are outrunning incomes in Toronto, are turning off some first-time buyers, while forcing others to go deeper into debt, tap their parents for hefty down payments, and opt for a condo rather than a detached house,” said BMO economist Sal Guatieri.

The first-time homebuyers report was conducted by Pollara on behalf of BMO. Results are based on an online survey of 513 first-time Canadian buyers conducted between January 24th and March 6th, 2014.

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