Two-Thirds of Millennials Expect to Afford a Toronto-Area Home, Study suggests

First-time buyers are not turned off by Toronto's hot housing market. According to a survey conducted by Pollara for Bank of Montreal, approximately two-thirds of millennials in the Toronto area anticipate to buy their own home.

The report was released last Wednesday by Pollara, a research firm on behalf of Bank of Montreal.

Half of the survey respondents remain in fear that they will not be able to afford their monthly mortgage payments. Nearly, two-thirds of the survey respondents worry that they will not be pre-approved for a mortgage.

Toni Tintinalli, BMO's regional vice-president of personal banking in the GTA, stated that if first-time buyers are good savers, and they have a good job and good credit, they will get pre-approved.

He also stated that they may not get approved for the amount they want but they will most likely get approved if they have those things in place. Banks still say that sticking to the one-third rule where debts don't exceed a third of a buyer's gross income is good rule to follow.

Half of Canadian millennials already own a home. 76 per cent of those who currently rent, expect to buy within five years. From the Toronto area respondents, 73 per cent say they would delay purchasing a home to get the home they want. Only 14 per cent of respondents indicated that they would move outside their preferred area to own a home.

For this particular survey, 2,079 Canadians from the ages of 19 and 35 were surveyed between March 14th and March 17th.

43 per cent of those surveyed were from the ages 30 to 35. 35 per cent of those surveyed were from the ages 25 to 29 and 22 per cent were aged 19 to 24.

Reference: Durham Region News

http://www.durhamregion.com/…/6493528-two-thirds-of-millen…/