In a recent article by Canadian Mortgage Trends, it is noted that the entry-level market is becoming increasingly difficult for buyers to break into as the number of prospective buyers rises and lenders become more stringent with their loan criteria.
Firstly, the report notes that the demand for residential properties has increased significantly in recent years as home prices have appreciated and buyers look to take advantage of low interest rates. As such, entry-level buyers are being outbid by more experienced and financially secure buyers who have access to larger down payments and can afford higher bids. The article then goes on to discuss the fact that lenders have also become much stricter in terms of the loans they will approve as they attempt to limit risk.
In light of this, the article proposes several solutions for prospective first-time buyers. Firstly, it suggests that entry-level buyers look to purchase properties in smaller cities or towns, where housing prices tend to be lower and competition far less intense. Additionally, it suggests that buyers look outside of their desired price range, allowing them to increase their chances of securing a property. Finally, the article recommends that buyers consider alternative sources of funding, such as family help, rent-to-own agreements, or applying for special government grants or incentives, as this can help them bridge any gaps in their financing.
The article's overall assessment is that the current market conditions are making it increasingly difficult for entry-level buyers to enter the real estate market. As such, buyers need to be prepared to explore all avenues in order to increase their chances of success. This includes researching different areas and price ranges, as well as considering alternative financing options. Ultimately, if buyers are willing to go the extra mile and do the necessary research, they can still enter the market despite the current obstacles.
This article was contributed on Nov 27, 2023
