If you’re a BC resident struggling to find the money to buy your first home, you’re not alone, as more and more people turn to the bank of mom and dad for help, and some are even waiting for an inheritance.
The way the situation in BC and Vancouver compares to other provinces and cities in this regard is also quite staggering.
For example, 28% of TD survey respondents said they were asking their parents or guardians for financial support. That’s the most in Canada and six times higher than in Alberta, where only 5% deal with the same reality.
There’s another unfortunate area where BC leads all of Canada.
“A large percentage of people that are undergoing stress and frustration,” Steve Ng, mortgage specialist at TD, told Daily Hive, adding that residents in BC have the highest amount of stress compared to folks in other locales looking to buy a home.
Some other sobering stats include that three in four surveyed prospective BC homebuyers (76%) aren’t confident in their ability to buy their desired home within the next five-plus years. That struggle is taking a toll on the mental health of BC residents; 48% of people in BC say they feel anxious, which is the highest result in all Canadian provinces.
“You compare ourselves to Toronto as an example. It’s not that things are cheap, but the average incomes in Toronto are a lot higher than here,” Ng said.
Most of those who rely on their parents for support are looking to their mom and dad for help with a down payment.
Looking at the numbers for an average-priced home in Vancouver of $2 million, a 20% down payment would amount to $400,000, which, based on current interest rates and quick calculations from Ng, would put your monthly payments at a whopping $9,000.
While this wasn’t part of the survey, Ng said that in his experience, due to the lack of real estate affordability and the cost of living, many residents are waiting for their parents to die for an inheritance to afford their first home.
“That’s the reality. That’s where all the wealth is right now, tied up in equity that our parents have built up,” Ng added.
Another thing that many BC residents don’t have is a financial plan.
“It’s not just about buying a home,” Ng said.
“I think it’s about looking at what your goals are for one year, three years, five years or ten years out.”
Over half of respondents are waiting for home prices and interest rates to drop, but Ng says, “I don’t know that that’s a proper plan.”
“I think those are signals, but that’s not really a plan because, let’s face it, house prices aren’t going to drop. Even if they did, it won’t be by very much.”
As of March 2024, the benchmark price for the average detached home in Vancouver is $2,007,900.