Quote:
Originally Posted by MillerTime GFG
Very rarely do you find gifted down payments for households that already have saved at least 5% on their own. Gifts are generally to get households to the 5%-mark.
I assume you mean "conventional" mortgages as opposed to traditional, but keep in mind many of those purchases are for people much older than the 35-year old range you eluded to.
What you think is affordable vs. what OSFI think is affordable are two different things. The stress test is at 4.79%, so you need to base your monthly payments at that rate, not the contract rate.
I can assure you most families at the age of 35 do not have 20% down payment. So now you're looking at max 25 year amortization, with insurer guidelines, and a lot of people in this age group still have unsecured debts. Vehicle loans, student loans, credit cards/LOCs, etc.
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I don't disagree with you, that most people can't afford the ludicrous prices of real estate right now. I couldn't be more in agreement with that.
The properties are, however, selling. They are largely now selling to local people. Once again, the driving factor looks like help from parents. Down payment and co-signers. It's a trend that has overtaken Toronto/Vancouver and is now spreading to other cities.