New mortgage stress tests are lowering millennials’ purchasing power, forcing some to lower expectations before entering the housing market.
The Royal LePage report says the average millennial has a budget of just over $200,000, but that’s a third of the average Canadian home price.
Realtor Dawn Macer said if you’re looking for that starter home, you still have plenty of options.
“They might have to buy a three bedroom townhouse now, but it still allows for them to kind of have that family planning aspect,” she said.
“You’re still better off in my opinion owning a property that’s smaller than what you originally anticipated, I think in their minds is still better than renting.”
Macer adds the mortgage guidelines ensure you can afford a house, even if interest rates continue to rise.