Amidst rising rates, Canadians use family funds and co-ownership to afford homes, finds Zolo's 2024 report
Despite high interest rates, savvy Canadians are actively leveraging the emergence of buyer's markets across the nation, a first since the pandemic began.
Canadians are meticulously shopping for the best mortgage rates, augmenting their down payments with family contributions, or choosing co-ownership with friends or relatives.
A recent report from Zolo, detailed in the 2024 Canada Housing Market Report, illustrates significant shifts in home buying trends over the past four years.
The report includes feedback from 800 individuals who purchased homes in 2023, revealing notable strategies:
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68 percent of respondents enhanced their down payments using family funds.
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35 percent bought properties with family or friends, while 38 percent did so with a romantic partner.
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38 percent of buyers engaged mortgage brokers, ranking them as the fourth most consulted real estate professionals.
The trend towards multi-family households is rising, with 35 percent of Canadians in 2023 opting to buy homes with family or friends. This approach allows buyers to combine resources, making home ownership accessible in otherwise unaffordable markets.
Using mortgage brokers has also proven a strategic move for homebuyers seeking to minimize their borrowing costs. In 2023, 38 percent of homebuyers utilized the services of mortgage brokers to secure lower interest rates.
Angela Calla, a mortgage expert, and author, supports this approach, noting that “Mortgage professionals are dedicated to providing unbiased advice and empowering clients with a range of options tailored to their individual needs and financial goals,” thereby helping clients achieve more manageable monthly payments.
