More of BC’s first-time homebuyers are looking to their parents for financial assistance.
According to a December 2016 survey conducted by the Society of Notaries Public BC, first-time buyers are benefiting from financial assistance from their parents, specifically with down payments on their first home purchase.
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“It’s great to see that many first-time buyers are finding ways to get their first home, despite rising prices,” Tammy Morin Nakashima, President of the Society of Notaries Public of BC, said in a release.
“Regardless of the market or regulatory conditions, the most important consideration is that young buyers understand all of the short and long-term costs that may apply to buying and owning a home.”
Across BC, Notaries saw an increase of young clients getting financial assistance from their parents to help pay for their down payments, compared to previous years.
In 2015, 57% of BC Notaries reported that first-time buyers were getting help with down payments from their parents. In 2016, that number increased to 72%.
The survey, which had 150 participants, found that first-time buyer activity was strong in 2016. Across BC, 55% of Notaries found that first-time buyer activity remained the same in 2016 and 29% saw an increase.
But parents of first-time buyers may soon get a break from helping with their kids’ down payments.
In December, the BC provincial government announced a plan to help first-time homebuyers get into the housing market.
The BC Home Owner Mortgage and Equity (HOME) Partnership program will contribute to the amount first-time homebuyers have already saved for their down payment.
The program will provide up to $37,500 (or up to 5% of the purchase price) with a 25-year loan that is interest-free for the first five years.