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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

park
Paskapoo Park staff and volunteers await the word when they can again welcome visitors to explore the site

In the meantime, summer help has been hired to maintain grounds and buildings

As of Friday, Alberta has under 10,000 active COVID-19 cases. (Image courtesy CDC)
Alberta reports 2,271 new COVID-19 cases, Red Deer cases rise slightly

Across Alberta, there are 666 people in hospital with COVID-19, including 146 in the ICU

Advocate file photo
Harness racing returning to Lacombe track

Track on 2 Racing and Event Centre has high hopes for 2021

RCMP. (Phil McLachlan/Capital News)
Rimbey RCMP respond to 32 calls for service

These files include two thefts of trucks, three fraud-related investigations and two other types of theft complaints

Nick Bentley of Calgary competes in the saddle bronc at the 51st annual Bentley Rodeo. File Photo
Bentley Fair and Rodeo cancelled due to COVID-19

This is the second year in a row that the rodeo has been cancelled because of the pandemic

FILE - In this March 3, 2021, file photo, a vial of the Johnson & Johnson COVID-19 vaccine is displayed at South Shore University Hospital in Bay Shore, N.Y. (AP Photo/Mark Lennihan, File)
Johnson & Johnson COVID vaccine can be given to adults 30+ who can’t wait for mRNA: NACI

Panel says single shot vaccine can be especially useful for populations unable to return for second shot

Two passengers were recently fined thousands of dollars after they faked their pre-flight COVID-19 test results. (Paul Clarke/Black Press)
2 passengers in Canada fined thousands for faking pre-flight COVID-19 tests

The government issued a warning Thursday to others thinking of doing the same – do it and you’ll be ordered to pay

A wild rabbit grazes in Nanaimo, B.C. in this Feb.2, 2018 photo. Rabbit owners in Alberta are being warned about a deadly virus that was identified in a southern Alberta household last month. THE CANADIAN PRESS/Dirk Meissner
‘Like a flash fire:’ Rabbit owners warned about outbreak of deadly disease in Alberta

The disease is confined to rabbits and cannot spread to humans

A lady wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
Canada may find it challenging to reach herd immunity from COVID-19, experts say

Level of immunity among the population changes with the variants, especially the more transmissible strains

B.C.’s provincial health officer, Dr. Bonnie Henry. THE CANADIAN PRESS/Jonathan Hayward
Dip in COVID-19 cases with 572 newly announced in B.C.

No new deaths have been reported but hospitalized patients are up to 481, with 161 being treated in intensive care

A dose of the Pfizer COVID-19 vaccination is prepared at a mobile clinic for members of First Nations and their partners, in Montreal, Friday, April 30, 2021. THE CANADIAN PRESS/Ryan Remiorz
Pfizer-BioNTech vaccine approved for kids 12 to 15 years old in Canada

The vaccine was previously authorized for anyone at least 16 years of age or older

Prime Minister Justin Trudeau listens to speakers appearing by video during a news conference in Ottawa on Tuesday May 4, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada will align policy on ‘vaccine passports’ with international allies: Trudeau

Trudeau says Canadians could begin travelling outside the country again by summer

Ranging from 11 to 20 in age and representing seven provinces and one territory, the plaintiffs are appealing a Supreme Court judge’s decision to dismiss their lawsuit last fall. (David Suzuki Foundation)
15 youths not backing down in their fight to sue Ottawa over climate change inaction

The group has filed an appeal after their lawsuit was struck down by a Federal Court judge last fall

A 2021 census questionnaire. (Black Press Media file photo)
2021 census responses due May 11

By law, every household must complete a census questionnaire

Most Read