Curious how people are able to enter the housing market when prices are soaring? RateHub created a handy infographic illustrating the creative ways that Gen-Y home buyers are able to finance their down payments. BuzzBuzzHome explains, “First-time home buyers have more than a few tricks up their sleeves for affording a home on a tight budget. Using data from Genworth Canada’s First-Time Homeownership Study, our friends at Ratehub created an infographic to explain how Gen Y is breaking into this tough market.”
With a 400% increase in home prices since 1985, new home buyers are using a variety of saving techniques in order to put money down on their dream homes. Using a combination of savings, RRSP’s, family help, TFSA, wedding gifts and borrowing on a line of credit, young people are buying their homes and paying them down at an accelerated rate.
While people that bought in urban centers like Toronto and Vancouver had to pay more for the luxury of being downtown, they were able to offset the higher prices by putting down larger down payments.
For more insight, check out the infographic here:
First time home buyers are certainly able to flex some muscle when it comes to managing their finances. Getting creative with saving and mortgage options have Tell me how you are saving for your first home in the comments! I love hearing about the innovative and savvy ways people are using to enter the housing market.