B.C. notaries say first-time homebuyers relying more than ever on bank of mom and dad
Credit to Author: David Carrigg| Date: Tue, 31 Dec 2019 01:35:46 +0000
First-time homebuyers are more likely than ever to ask their parents for down-payment cash, according to a B.C. Notaries Association survey.
The survey of 193 members (conducted in December) found 90 per cent of those polled said most first-time-buyer clients got financial support from family in 2019. This compared with 70 per cent of members polled saying their first-owner clients were going to the bank of mom and dad in 2015.
However, only eight per cent of first-time-buyer clients got more than half of their down payments from parents, compared with 19 per cent in 2015.
“While more first-time buyers are getting financial help, they appear to be getting a lower proportion of their down payment over the last four years,” the report states.
Fifty-nine per cent of notaries said their clients typically get less than 25 per cent of the down payment, while a third said their clients typically got between 25-50 per cent of their down payment.
The survey, released Monday, found 74 per cent of notaries thought house prices were an issue in their communities. Only notaries in northern B.C. and the Okanagan indicated “house prices were not an issue in their community.”
Notaries also reported increased mortgage restrictions and lack of supply were making it harder for first-time buyers than in previous years.
In the Fraser Valley, notaries reported more first-timers were buying strata units compared with other years.
Northern B.C. was the standout in the report, with 40 per cent of notaries saying there had been an increase in first-time-owner activity — provincially it was reported to be flat. This was attributed to resource sector growth. The multibillion-dollar Site C dam and LNG Canada projects are underway in northern B.C.
Northern B.C. is also expected to be one of the few areas in the province that will see climbs in assessed values when the 2020 assessment roll is released Jan. 1, 2020.