My thoughts of the week..

For many young adults the idea of buying a home seems like this mythical goal that they will never be able to accomplish. The idea of saving up for a down payment, securing an excellent income, maintaining good credit all while maintaining some resemblance of a life seems impossible. But is it? We all still know people who are doing it! What are they doing differently?

Let’s look at the stats! A Zillow report done in 2021 found that the average home buyer is 45 years old but about 25% of buyers are between the ages of 30-39. In July the average cost of buying an apartment was $408,611, Townhome was $605,339 and a detached was $906,719.

In some scenarios a first time home buyer only needs to put down 5% which for an apartment would mean roughly a downpayment of $20,430.55. In order to buy that home by 25, if you started working at 18, you would only need to save $2,918.65 per year. This could be saved by just working an extra 4 hours per week if you work a minimum wage job in BC without changing any of your spending habits.

So why isn’t everyone buying apartments? For some people it might be an inability to acquire a loan. For others they may asked their bank for a loan and they said no. Getting a no from the bank can feel embarrassing and for some so much so that they don’t want to ask someone else.

The truth is all banks have their own lending policies and guidelines and what might be a NO from one could be a YES from another. This is why I always recommend my clients talk to a mortgage broker. A mortgage broker works for you and shops around with different banks to find you that YES or that best rate.

My advice to young buyers is always to make a plan, set goals and talk to a mortgage broker early. Even if you don’t think you will be able to buy a house for years they can help get you on track to make that dream of owning a house into a reality!

If you want some advice on some great ones in the Fraser Valley, let’s chat!