Many Canadian millennials forced into starter homes - 660 NEWS
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Many Canadian millennials forced into starter homes

(Pixabay)

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.