Millennials Finding it Harder to get a Mortgage!
Matrix Mortgage Global – Millennials Finding it Harder to get a Mortgage
In recent months, Canada has seen a sharp decline in the number of millennials applying for mortgages. While this is no doubt at least in part due to new mortgage rules that were introduced earlier this year, it could also be a sign that the weakness in Canada’s housing market will continue for a little while longer.
According to TransUnion, new mortgages among Canadian millennials went down by 19.5% in the last two fiscal quarters. That’s a considerably higher drop than was seen in other age groups. As a whole, new mortgages in the country were down by 8.8% and among the elderly, mortgages actually increased by 7.8%
The increase in mortgages among the older generations is likely due to the fact that these individuals have built up equity in their homes and can borrow against it.
Millennials on the other hand, are less likely to be able to afford pricier homes and are turning to lower cost alternatives such as condos. This could explain why the condo market is still doing fairly well in comparison to the rest of the Canadian housing market.
Despite the current faltering markets, however, many experts are still counting on the millennial generation to support Canadian real estate in the years to come. According to a study by Altus Group, about 40% of home purchases in Canada today are being made by millennials with the average age of a first-time buyer being 32 and the average household income being $85,000.
Canadians are improving in how they handle debt.
Despite, new mortgage rules making things tougher, reports from TransUnion show that Canadians are improving in how well they manage their debt. While debt levels did climb somewhat in 2018, delinquency rates are declining.
Matrix Mortgage Global can help millennials who need a mortgage
Despite the more difficult time that Canadian millennials have been having recently in getting approved for mortgages, Matrix Mortgage Global offers many solutions that can help. We work with a wide range of lenders including those that specialize in loans for those with little or no credit. We also work with reputable lenders who are not required to adhere to financial stress test rules.
Whether you are a millennial or belong to any other generation, the team at Matrix Mortgage Global can help find a solution that works for you. Call us today at 1-877-371-5293.