Newsletter

Newsletter February 2019 – How Young Montrealers Feel About Home Ownership

Welcome to the Guardian Financing February 2019 monthly newsletter. This month’s issue is on how young Montrealers feel about home ownership.

Survey: How Young Montrealers Feel About Home Ownership

It is interesting to see how younger demographics in Montreal are reacting to the changing landscape of home ownership in the city. A survey conducted recently offered some insights into their perception regarding the subject, and how they feel about owning a home in Montreal. The Quebec Federation of Real Estate Boards conducted the study, and here is an overview concerning the findings:

More than 50% intend to buy homes within the next five years

More than 50% of the people belonging to the age group of 18 – 34 years, intend to own a property in Montreal within the next five years. They also prefer to have suburban homes rather than condos, which counters the common misconception that young individuals have their sights set primarily on condos. The study also indicated that this group of Montrealers would prefer to live in the city, but only under certain conditions.

Purchases made in the last five year

According to the survey, 73% were successful in applying for a mortgage for the very first time. This indicates a relatively high success rate in mortgage applications by younger demographics. 28% of the applicants used HPB as their main source to fund their respective down payments.

It is also interesting that out of all the applicants throughout the last five years, 52% opted for single-family homes, while just 21% preferred to buy condo units. It is, therefore, very clear that young buyers prefer going for single-family homes as opposed to urban condos, as most people had generally assumed.

Intentions to buy investment properties

Just about 11% of the 18 – 34 age group have the intention of buying a rental investment in Montreal. This is relatively lower when compared to the generation X age group (35 – 54 years old), whereby currently, their interest to buy rental property in Montreal is approximately 14%.

Urban ownership

Again, the survey revealed that it is not every millennial that desires to own a home located within central urban areas, and if they were, then it would only be under certain conditions. Only 55% of millennials would choose to live downtowns over the suburbia if:

  • The property was available at a more affordable rate – 30%
  • If it had improved accessibility services
  • It had better public infrastructure
  • It comprised of a relatively large dwelling

From the above, it is evident that the majority of the millennials are leaning towards suburban homes. It was also established that once millennials got established in the suburbs, only 40% would wish to come back to the city.

Guardian Financing is a direct private mortgage lender. We serve the greater Montreal area providing short term residential mortgage loans, typically ranging from $50,000 to $3,000,000. Contact us today to discuss your file at 514-700-3121 or by email at files@guardianfinancing.ca

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