High interest rates and low demand could make you think millennial homebuyers are outwaiting
Ontario’s housing market.
This is why.
Who’s Buying Homes in Ontario’s Housing Market
Millennials who’ve been living at home or in shared housing to save for a downpayment are poised to hit Ontario’s housing market hard when house prices drop. Early millennials are turning 40. The urge to invest in real estate couldn’t be realer. Know the mortgage risks and consequences.
Gen X and millennials are driving the housing market in Ontario. Boomers who renovated during the pandemic are staying put, at least for now, and that makes affordable housing harder to come by. How much to save for the first time homebuyers’ amount.
What’s Ahead for Millennial Homebuyers
With a Canadian-style recession in the wings and interest rate hikes not out of the red just yet, Canada Mortgage and Housing Corporation (CMHC) predicts housing prices will drop an average of 15% by spring 2023. That combination won’t improve housing affordability for millennials. But it will make prices lower when interest rates finally chill out.
CMHC sees lower inflationary pressures and interest rate declines converging by mid-2024. That should compensate for the rapid growth in housing prices caused by consumers staying home during the pandemic. Construction slowdowns and material shortages have further fueled the gap between supply and demand in Ontario. More on Canada’s First-Time Home Buyer Incentive.
It’s all the more reason millennials are anxious to buy.
What Millennials Look For In a Home
And millennials have very specific wish lists. The top 5 things millennials look for when buying a house are:
- A detached single-family home.
- More space, preferably 2,400 square feet.
- Affordable older homes or fixer uppers.
- Parking space, especially their own garage.
- Large kitchens.
4 Reasons Why Millennials Should Invest in Real Estate Now
Here’s why investing now makes sense.
- When traditional homebuyers pull back from real estate markets, millennials have less competition. Variable rate or short-term mortgages are a bridge strategy to buying a home while interest rates are high. Incentives for the millennial first time home buyer Ontario. Can my line of credit be used as downpayment for CMHC mortgages?
- Tighter lending practices and mortgage stress tests have their upside. They keep your ambitions realistic and your budget in safer territory. High ratio mortgage lenders like CMHC, Canada Guaranty, and Sagen™ that offer mortgages with 5% to 10% down look at your overall debt before deciding how much mortgage you can afford. Use the BMO mortgage calculator to find your borrowing limit.
- The boomer generation is retired or retiring and, according to research by OREA (Ontario Real Estate Association), headed for small towns and rural spaces. That frees up urban and suburban homes and condos for millennials. OREA’s research substantiates that. Thirty-one per cent of millennials surveyed wanted to live downtown for work or entertainment, while 36% opted for the suburbs. Best places for millennials to look for Ontario homes.
- Immigration keeps growing and that will impact Ontario’s housing supply in future. Getting a foothold in the real estate market sooner rather than later may be more important than ever for millennials.
They are four good reasons to move out of the family home.
Why You Need a Real Estate Lawyer
Hire Axess Law when you buy or sell real estate in Ontario. Our affordable, flat fee legal services are lower than you’d expect to pay for traditional lawyers. You don’t even have to leave home. We go online anywhere in Ontario to assist you. Get ready for the real estate closing process (Ontario).
Your Axess Law real estate lawyer goes over the fine print in your offer to purchase for exclusions or omissions that affect your purchase or sale. We explain terms or conditions you have questions about, and advise you when amendments to the agreement of purchase and sale are advisable. What happens to the deposit when buying a house.
Professional home inspections can turn up structural faults or minor defects you may want resolved before you finalize a real estate transaction. Your Axess Law real estate attorney negotiates with the seller’s lawyer to decide who pays for repairs. We advise you if the seller will accept a reduced price so you can make the changes you want without additional expense.
Getting favourable mortgage terms can take time. If your real estate closing deadline is closing in on you, an Axess Law real estate lawyer can negotiate with the seller’s lawyer to extend the completion date. We explain your legal options if a seller refuses and refer you to our trusted legal partners if your home purchase falls apart. What to know about signing a mortgage contract.
Your Axess Law real estate attorney finalizes your real estate transaction by registering title to property in your name. We search the title to locate financial claims or construction liens that can hold up a home purchase or sale. Add a spouse to title before you close or after. Just call us when you’re ready. How to change name on house title (Ontario).
Affordable Legal Services, Anywhere in Ontario
Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
Use a virtual real estate lawyer.
Mortgage Lawyers for Flat Fee Legal Services
Make appointments with Axess Law mortgage lawyers the easy way with our online booking form. It takes just minutes of your time. We’re available 7 days a week, at times that fit your schedule. Video conference with an Ontario real estate lawyer anywhere you are. We witness your signature using secure, remote signing software and send you a copy. For in-person meetings or to talk to a live operator, call our 647-479-0118 lawyer line in Toronto or toll free to 1-877-402-4277.
Axess Law has convenient locations in the Greater Toronto Area or Ottawa, with onsite parking and easy transit access.
Hire an affordable real estate lawyer.