“You also have to count the repayment of capital. It’s like forced savings, but you have to be able to do it, ”adds Mr. Dumont-Gagné. “As in the case cited, at more than $ 400, it is not a savings that Mr. and Mrs. Anyone can make these days.”
“It’s the maintenance that makes it more expensive,” says Bilodeau. “Monetarily speaking, what will come out of our pocket will be higher to have a condo compared to a four and a half for rent. Despite the rise in house prices. ”
Downpayment
The content of the down payment can make all the difference, adds Mr. Dumont-Gagné. “If someone buys a condo for $ 250,000 and makes a down payment of $ 150,000, it is sure to be cheaper. [chaque mois]. But when we talk about a minimum down payment [5 %], cost for cost, it is not the same thing. And when someone makes a minimum down payment of 5% and we add the loan insurance premium from the Canada Mortgage and Housing Corporation [SCHL], we are almost 100% financed for the house. ”
This insurance premium, of a maximum of 4% of the value of the house, can be included in the mortgage. But not the sales tax on this premium which will be paid to the notary at the same time as the transfer duties (or Welcome tax).
Growing concerns
The Manulife Bank of Canada recently revealed the results of a cross-Canada survey that reflect citizens’ concerns about homeownership.
Three in four Canadians who do not own a home want to own one, but feel they cannot afford it.
Next, 67% of respondents are worried about the price of housing in their community. This makes them believe that they should move to another area or another city if they decide to buy a home.
Finally, 7 in 10 (71%) Canadians who are renters are concerned about saving for a home, and 4 in 10 (39%) are very concerned.
Normally, a household must devote a maximum of 30% of its monthly budget to housing.
For some, being a tenant fits with their lifestyle. “There is a question of personal priority as well. For my part, owning my roof, there is a value attached to that, a feeling of accomplishment. But on the other hand, it will bring additional responsibility. Some are capable of sacrificing a quality of life in order to be homeowners, ”concludes Mr. Dumont-Gagné.
The Ipsos survey, conducted for the Manulife Bank of Canada, was conducted online between April 30 and May 4, 2021 among 2001 Canadians aged 20 to 69 from all provinces and whose households had an income greater than $ 40,000. It has a confidence interval of ± 2.5% 19 times out of 20, of what the results would have been if all adult Canadians aged 20 to 69 had been polled.
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