Calgary millennials could hurt from new mortgage rules

Millennials in Calgary lead the country in owning property, but one local real estate agent says new mortgage rules could change that.

According to Royal LePage’s Peak Millennial Survey, 42 per cent of respondents in the province own property. However, new mortgage rules and higher stress tests from the banks may impact it going forward.

“It’s more buyers holding off for now,” explained Jimmy Olandesca with RE/MAX IRealty Innovations of Calgary. “Essentially, what’s happening is they are needing to qualify at higher rates. We are seeing our buyers holding off, saving more of a down payment, so they’re better positioned to make that purchase.”

He added the percentage of millennial homeowners isn’t surprising in a market where there are better jobs and more affordable price tags in comparison to big cities like Vancouver and Toronto.

The survey shows a couple of years of a suppressed market and a good supply in Alberta made way for the highest proportion of millennial homeowners in the country. But it says of those between 25 and 30, only half believe that they will be able to purchase a home in the next five years. That’s the lowest rate in all of Canada.

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