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Originally Posted by MillerTime GFG
Do you have any evidence supporting this stuff? I think you'd be surprised how many people DON'T have access to 160k. Sure, those that have been in the market for > 10 years may have it, but I'd say around 1 in 20 first time buyers have 20% down, and far fewer on 800k homes.
Most dual income families around the age of 35 do not have $160,000 in liquid assets readily available for down payment.
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The best evidence is that many homes in Canada are selling for this amount with traditional mortgages. Once again, I wasn't saying that most first time buyers should jump into a $800k house. If you want to run the same numbers with a starter home in the $500k range, you're looking at $100k down and monthly payments of $1,700. If it's the 20% people are struggling with, there are lenders who will offer financing with less than 20% down.
I also think your vastly underestimating how many people are getting help from their parents.
For the record, I don't think this is a positive outcome in any way. I think it's absolutely horrible. We are seeing economic mobility being degraded in a serious way. People who already have capital or who's parents have it make out like bandits. People who are working on fixed salaries get f-ed. It's destruction of the basic social contract.
It's the result of successive governments kicking economic woes down the road, with no real plan on how to resolve them.
Edit: to add some hard figures to my post:
Average detached home price in Canada is at about $500k now. Almost half of mellenial buyers get help from their parents with a downpayment:
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Although 72 per cent of millennials in KPMG’s survey said their goals include owning a home, almost half (46 per cent) of the ones who have bought a house relied on financial help from their parents to boost their down payment.
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https://www.theglobeandmail.com/glob...ticle34157168/