Canada’s Federal Budget 2019 provides some help for first-time home buyers in the form of the CMHC First-Time Home Buyer Incentive. Qualified buyers will be able to finance up to 10 per cent of the price of a new home or 5 per cent on an existing home through a shared equity mortgage with Canada Mortgage and Housing Corporation. Considering today’s prices in the Greater Toronto Area, this may still not be a deciding factor for many would-be homeowners. Nowadays, at Baker Real Estate Incorporated, we see the bank of mom and dad as a popular option for those who have parents to turn to. And condominiums are, by virtue of financial attainability, the choice for most first-time buyers.
Many parents are looking at the purchase of a condo for their children to live in while attending university or college, and then eventually, a retirement residence for themselves. They may also look at it as an investment they can bequeath someday as well. Condos across the GTA are increasing in equity quickly, often before owners actually move in. Encouraging children to enter the real estate market and making it possible to achieve that goal is one of the most loving things parents can do. Real estate is a cyclical business, and nothing can happen until people buy their first homes. They become the move-up buyers of the future and the right-sizers as they age. Smart parents buy sooner rather than later!