The Canadian Association of Accredited Mortgage Professionals (CAAMP) released a new report saying 17% of first-time homebuyers across the country are developing down payments using family gifts or loans.
While the study said home owners are aggressive in paying mortgages, CAAMP president Jim Murphy said sourcing money for down payments are getting tougher for first home buyers.
“Forty-five per cent of them have used savings — have saved up money towards the down payment. But 17% receive either a gift or a loan from families, parents… that goes towards that down payment.”
The survey also showed 10% were able to use first time homebuyers plan, “tapping into RRSPs to help with a down payment.”
Meanwhile, CAAMP added that the average down payment made on a first home remains the same 21% over the last 35 years.
“Overall, the CAAMP fall report paints a picture of homeowners whether just starting out on their ownership journey or long time mortgage holders, as remarkably confident,” said Murphy, in a news release. “They wait until they are financially stable before buying, and they take advantage of low interest rates to aggressively reduce their mortgage debt. Home ownership continues to be an important anchor for the Canadian economy.”