What property types should you consider when buying a home? Here are some key factors to understand when making your decision!
Clinton Wilkins chats with Amy Fiske on the Signal about first-time home ownership, inheriting a home, and why homeownership is a family affair.
Inheriting a home is the key to homeownership for many
Amy Fiske 00:00
A new report says people whose parents own their own home are twice as likely to be destined for homeownership. Katie Whitlock is a millennial who won’t be waiting on her parents to inherit their home.
Katie Whitlock 00:11
I don’t think I’m going to be taking over Phil and Bella’s house just because I think retirements going to be a lot more expensive than they even realize it is.
Amy Fiske 00:19
New data from Statistics Canada shows if you’re not in line to inherit property, you might be out of luck.
Katie Whitlock 00:25
I find it like it’s so hard for everyone. Everyone’s like not doing great.
Amy Fiske 00:30
Matthew Honsberger is the president of real estate company Royal Lepage. He says the housing market can be daunting for those who have only rented.
Matthew Honsberger 00:38
It’s not something you’ve been exposed to in your youth, you have to make a greater effort to go out and learn it.
Amy Fiske 00:43
Plus, parents with houses tend to have more money to share.
Matthew Honsberger 00:47
I think that people will be doing so by either gifting a down payment or maybe just having the kid take over the house that they grew up in. And
Amy Fiske 00:57
Honsberger says even people who do have cash are having a hard time finding a house to buy.
Matthew Honsberger 01:02
What they’re finding is that there’s not as much availability, because baby boomers are not moving out of their homes.
Families want to share equity
Amy Fiske 01:08
Clinton Wilkins is the principal mortgage broker for Centum Home Lenders. He understands what the new data is saying that home ownership is easier for those with parents who own property and can share the equity.
Clinton Wilkins 01:20
Those are the people that you know, have built up the credit, have the income and hopefully have the asset, whether that savings or help from the family to be able to get into that housing market.
Amy Fiske 01:28
That means learning about first time homebuyers incentives or using money from your savings for a down payment. Wilkins has some advice for those gearing up to settle down.
Start with a pre-approval
Clinton Wilkins 01:38
It really starts with a pre-approval. Seek the advice of an unbiased mortgage professional and I think making a plan is so important
Amy Fiske 01:45
Still for Katie Whitlock a way into the housing market seems impossible.
Katie Whitlock 01:50
If you tried to get your own mortgage like only level are 80,000, 90,000 down deposits and you’re like no bitch because I’m putting all my money into this guy’s mortgage and the mortgage that I get approved for would be way less than the rent I’m paying.
Amy Fiske 02:03
That’s the reality for a lot of millennials who see the housing market is completely out of reach. Amy Fisk for the signal Halifax