Two-thirds of first-time buyers in the province admit they’re worried about affording their home if interest rates go up, the survey found.Chart of Rate from Bloomberg Five year bond rates have been climbing recently but they are still rock bottom.
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New mortgage rules were brought in last month that shorten the maximum amortization to 25 years from 30, which was expected to deter some first-time homebuyers, although that doesn’t appear to be the case. Although sales are slowing in Vancouver, The Sun reported earlier this month that the Real Estate Board of Greater Vancouver’s president Eugen Klein said the decline appears to be caused by a drop off in investment buyers, and not declining numbers of first-time buyers.
The original report is here
Home ownership takes a major financial commitment beyond the down payment and monthly mortgage payment. Many first time buyers admit they overlooked some of the additional costs: 29% say they didn’t budget for on-going costs such as maintenance and utilities, 13% overlooked some of the one-time fees associated with buying a home, such as inspection fees and land transfer costs, and 6% didn’t budget for anything beyond the down payment and monthly mortgage payment.
More than half of first time home buyers with a mortgage (55%) said they were worried about affording their home if interest rates increase.No idea how the article above go 2/3 out of 55%
Hat tip: Dimitri Tishchenko commenting at VREAA