Millennials push up homeownership timeline on lower rates
Jamie Henry
Other
Many Millennials are looking to get into the home market sooner than they previous expected, according to a new report, largely on newly lowered mortgage rates.
A new study from the Bank of Montreal found 74 per cent of Millennials plan to purchase a home in the next five years, while 31 per cent said they’d be homeowners within the next 12 months.
“As Millennials today are saddled with more debt than when their parents were starting careers and families, the decreased interest rate provides an opportunity to pay down debt faster,” said Sal Guatieri, senior economist, BMO Capital Markets.
This younger generation is also the most confident about the market. The BMO report determined half of the Millennials polled say the lower interest rates will have a positive impact on their overall financial situation, while 21 per cent said they feel they can afford a home sooner than they previously thought.
However, agents on the ground say that confidence has already been at work.
“First-timer buyers are already expecting low rates,” says Justin Kua, an agent in Toronto. “It’s just giving people a little more confidence in being able to take on a mortgage.”
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