About a third (34%) of millennials (Canadians born in the 80s and 90s) are homeowners, finds a new HSBC survey.
Of those who don’t own, 82% plan to buy in the next five years. But there’s a minor problem: 70% of them haven’t saved enough for a down payment.
Enter the parental units.
Dependent supporters are rushing to the rescue of a small chunk of newbie buyers.
If history is a guide, in 2017:
- roughly 37% of millennials will take parental support for part or all of their down payment
- about 21% will move back in with the ‘rents to save their down payment (recent empty-nesters, don’t turn your basements into storerooms just yet).
For millennials who can’t qualify for a mortgage (for example, who don’t pass the government’s new 4.64% stress test):
- 59% would “consider” spending less on leisure and going out
- 37% say they’d consider a smaller than ideal home
- 30% would consider delaying children.
So there we have it, more casualties from the new mortgage rules: theme parks, bars and child-care workers. Bet that wasn’t an “intended consequence.”
Daily Fact: Twice as many millennials in China own a home; 70%, versus 34% here in Canada.