The 2024 Canada Housing Market Report from real estate website Zolo takes a look at the home buying trends that have emerged over the last year or so.
The “Bank of Mom & Dad” is growing as the favoured choice for homebuyers looking to top up the size of their down payment. With the standard ratio down payment of 20% running in the $200,000 range in many parts of the country, 48% of buyers say they got financial help from parents or relatives. Another 20% used an inheritance, meaning a grand total of 68% of buyers relied on family for assistance last year.
Seventy-three percent of buyers say they used savings for their down payment. Tax advantaged savings accounts were a key tool in gathering that money, with 61% using a Tax Free Savings Account (TFSA). Forty-one percent used their RRSP.
Among first time-buyers 51% used the new First Home Savings Account (FHSA) for their down payment savings in 2023. The FHSA was introduced in 2022 and it is expected to gain more users as awareness grows.
High prices and high interest rates have an increasing number of buyers choosing co-ownership. The study says 35% bought a home with either family (28%) or friends (7.9%) last year.
More homebuyers are searching for the best interest rates, with 34% shopping for a mortgage lender in 2023 compared to just 26% in 2022. Nearly 40% are using mortgage brokers to secure the lowest possible rate, making them the 4th most used real estate professionals.