Buying and selling a home comes with a lot of questions. (THE CANADIAN PRESS/Sean Kilpatrick)

Buying and selling a home comes with a lot of questions. (THE CANADIAN PRESS/Sean Kilpatrick)

COVID-19 is reshaping what first-time homebuyers are looking for: BMO survey

Still, 40 per cent of potential first-time home owners think now is a good time to buy

The pandemic has reshaped the needs of first-time homebuyers in Canada but COVID-19 isn’t causing too much hesitation in buying, a Bank of Montreal report suggests.

According to results from a recent survey, conducted by Pollara Strategic Insights, found that the average first-time home buyer is looking to spend about $432,000 with more than 40 per cent of the 801 adults polled saying they believe now is a good time to buy.

Broken down by province, that stat increases to 60 per cent in Alberta and the Prairies while dropping to 33 per cent in Ontario and B.C. where prices have stayed relatively status quo through the pandemic.

The biggest impact COVID-19 has had on the market among aspiring home owners is the type of property looking to be purchased, the survey found.

Twenty nine per cent of those surveyed said they’re changing their search from a major city to the suburbs or a rural area. As well, with working from home becoming more prevalent, a quarter of respondents said they’re moving their search away from a condo or townhome to a detached home.

Hassan Pirnia, head of personal lending and home financing for BMO, says it is encouraging to see Canadians maintaining their optimism in the housing market.

“While many buyers are viewing the market favourably, households are facing stronger headwinds than they have in the recent past,” Pirnia said. “As buyers look to enter the market, we should expect to see a continued trend where they are exploring different financial options to help with the purchase.”

The size of the mortgage first-time buyers are looking to take out has also been influenced by COVID, the survey found.

About half of buyers have had to tap into their down payments to help cover unexpected costs over the last several months, BMO said. A quarter of first-time homebuyers have said that they will have to take out a larger mortgage – with Ontario and B.C. buyers saying they more the most likely to opt for mortgages at 30 and 26 per cent, respectively.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Real estate

Just Posted

The Red Chris open pit mine approximately 80 km south of Dease Lake. The province and Tahltan will start negotiations on the first consent-based decision-making agreement ever to be negotiated under DRIPA with regards to two mining projects in northern B.C. (Newcrest Mining photo)
B.C. to begin DRIPA-based negotiations with Tahltan First Nation on two northwest mining projects

Negotiations on Red Chris and Eskay Creek mines to commence soon in accordance with Section 7 of DRIPA

President of the Tahltan Central Government, Chad Norman Day, surveys Tahltan territory by helicopter in this July 2019 handout photo. The Tahltan Nation and the British Columbia government have struck what officials say is a historic agreement for shared decision-making for the nation’s territory in northwestern B.C., a hot spot for mineral exploration. Day says the deal shows they are “getting closer and closer to a true nation-to-nation relationship.” THE CANADIAN PRESS/HO - Tahltan Central Government
Tahltan Nation, B.C. government sign agreement for shared decision-making

Deal commits the province and the northwest B.C. nation to developing a land-use plan

Tahltan First Nation wildlife guardian, Jarett Quock, above and below right, was awarded the Outstanding Individual Leadership Award by the Indigenous Leadership Initiative on June 3. (Photos courtesy Adam Amir)
Tahltan wildlife guardian receives outstanding leadership award

Jarett Quock’s contributions were recognised by the Indigenous Leadership Initiative

Taylor Bachrach, NDP MP for Skeena-Bulkley Valley addresses Parliament on June 7, in call for the federal government to stop fighting Indigenous children in court and to implement the Truth and Reconciliation Commission’s Call to Action. (Image: supplied from Facebook)
NDP motion calling for immediate reconciliation action passes

Skeena-Bulkley MP Taylor Bachrach addresses federal Parliament

The farmhouse in Glentanna where the founding meeting of the Bulkley Valley Credit Union took place on April 14, 1941. (BV Museum archive)
Bulkley Valley Credit Union announces finalists for legacy project donation

Community can vote for one of the three finalists from each area

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Emily Steele holds up a collage of her son, 16-year-old Elijah-Iain Beauregard who was stabbed and killed in June 2019, outside of Kelowna Law Courts on June 18. (Aaron Hemens/Capital News)
Kelowna woman who fatally stabbed teen facing up to 1.5 years of jail time

Her jail sentence would be followed by an additional one to 1.5 years of supervision

Cpl. Scott MacLeod and Police Service Dog Jago. Jago was killed in the line of duty on Thursday, June 17. (RCMP)
Abbotsford police, RCMP grieve 4-year-old service dog killed in line of duty

Jago killed by armed suspect during ‘high-risk’ incident in Alberta

The George Road wildfire near Lytton, B.C., has grown to 250 hectares. (BC Wildfire Service)
B.C. drone sighting halts helicopters fighting 250 hectares of wildfire

‘If a drone collides with firefighting aircraft the consequences could be deadly,’ says BC Wildfire Service

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

A aerial view shows the debris going into Quesnel Lake caused by a tailings pond breach near the town of Likely, B.C., Tuesday, Aug. 5, 2014. THE CANADIAN PRESS/Jonathan Hayward
Updated tailings code after Mount Polley an improvement: B.C. mines auditor

British Columbia’s chief auditor of mines has found changes to the province’s requirements for tailings storage facilities

Most Read