Canadians Get Creative to Enter Real Estate Market Despite High Interest Rates

According to a Zolo survey, buying a home with family or friends is becoming mainstream.

TORONTO, April 15, 2024 /CNW/ - Despite high interest rates,  savvy Canadians are finding ways to take advantage of buyer's markets that have appeared nationwide for the first time since the pandemic. To do this, Canadians are shopping around for the best rates, boosting down payments with family money, or buying with friends or relatives.

A new report from Zolo highlights how dramatically home buying trends have changed in the last four years. Zolo asked 800 people who bought homes in 2023 about their home buying experiences. The results, outlined in the 2024 Canada Housing Market Report, found:

• 68% of respondents used money from family to boost their down payment
• 35% of respondents bought a home with family or friends, compared to 38% who bought a home as part of a romantic couple
• 38% of buyers used a mortgage broker, making these professionals the fourth most used real estate experts

Canadians are finding creative ways to afford a home, including purchasing with family or friends. The report found that 35% of 2023 buyers purchased their home with a family member or friends versus the 38% that purchased a home as part of a couple.

By pursuing co-ownership, homebuyers can pool resources and enter markets they otherwise may not be able to afford.

Mortgage brokers were the fourth most used real estate professionals in 2023, with 38% of homebuyers using their services. Mortgage brokers can help homebuyers secure the lowest possible interest rate, which is a financially savvy step. Saving even a few tenths of a percentage point on a mortgage rate can lead to a more affordable monthly payment.

Mortgage expert and author Angela Calla agrees, "Mortgage professionals are dedicated to providing unbiased advice and empowering clients with a range of options tailored to their individual needs and financial goals."

Zolo is one of Canada's most popular national real estate marketplaces. Each month, over 10 million home shoppers use Zolo to level up the way they buy, sell, rent, finance and learn about real estate.

SOURCE Zolo