Multi-family homebuying surges as buyers pool resources
Despite high interest rates, Canadians are adapting to the housing market with innovative strategies, according to a new report.
A recent report from real estate platform Zolo – based on a survey of 800 people who bought homes in 2023 – revealed a growing trend of co-ownership: 35% of home buyers in 2023 purchased a property with a family member or friends, compared to 38% who bought a home as part of a romantic couple.
“Canadians are finding creative ways to afford a home, including purchasing with family or friends,” Zolo wrote. “By pursuing co-ownership, homebuyers can pool resources and enter markets they otherwise may not be able to afford.”
Boosting down payments with family help was also common – 68% of respondents used this strategy.
Many prospective homebuyers are struggling to save for a down payment. A CIBC poll showed that 63% of non-owners could not save for a down payment, and 55% said they could only afford a new home with an inheritance or gift from their family.
"Savvy Canadians are finding ways to take advantage of buyers markets that have appeared nationwide for the first time since the pandemic," the report said. "To do this, Canadians are shopping around for the best rates, boosting down payments with family money, or buying with friends or relatives."
Mortgage brokers also played a key role, with 38% of 2023 home buyers using their services to secure the lowest possible interest rate.
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