With the majority of Millennials coming of child-rearing age, more and more of them are turning to private mortgages to get the money they need to buy a home. But consumer buying habits for this segment of the population is quite different than it was for their parents; they want to be close to mass transport, shops, and they’re not big fans of commuting to and from work. Most analysts say it’s not as bad as it seems for Baby Boomers and their big suburban homes far away from the things that make Millennials hearts go all pitter patter.
Hard to See the Future
When it comes to what you want when you have kids, it’s hard to know until it actually happens. Right now it’s expected that Millennials are going to force a big change in the housing market – and that applies to finance. More and more of them (and us as it happens!) are turning to private mortgage lenders (not to be mistaken for private investigator services), talking to Toronto mortgage brokers like us and getting a real education before they buy.
Among Canadians, Millennials are a more ethnically, financially and idealistically different group than their parents. This group wants a healthy mix before they commit to a home, they don’t want homogenous homes that blend into the landscape. They want communities that matter, not to live in a neighbourhood where they have to worry about how many flamingos they can place on their lawn.
Mortgage Habits are a ‘Changing
Millennials are running on flex schedules, they’re ditching credit cards and when they buy a house they tend to obsessively research every last detail. Mortgages right now account for half of the debt they owe, with $14,000 carried by the average Canadian ages 18 to 34.
What Kind of Mortgage Do You Want?
Once you start thinking about buying a home (even if you’re not a Millennial), you need to know what kind of mortgage is right for you. This all depends on what you need.
If you have a high down payment and expect to repay your mortgage within the next 2-5 years, you may want to look at variable rate mortgages. These will have low interest rates that float with the prime (we’ll explain more of this when you speak with one of our Canada mortgage brokers).
If you don’t have a high down payment or you want to repay your mortgage in 10+ years, you’re going to want to look at fixed rate mortgages. These will give you a longer period of time to repay your mortgage, your interest rate will be fixed and you’ll be able to avoid the worries associated with hiking interest rates over time.
So if you’re a Millennial, you’re going to be worried about trying to get the best deal. You could hunt for the one that’s “right” online, or you could talk to a professional.
What is a Mortgage Broker?
Toronto mortgage brokers like us do all kinds of stuff that helps you get the money you need to buy a home. We can help you understand how your credit is affecting your chances for getting a mortgage. We can help you understand how much you’re going to have to pay over the course of your mortgage if you just go with the minimum monthly payment or if you go with a high down payment.
We’ll be here to help you understand everything you need to know before you take the plunge to get a private mortgage or a conventional mortgage. Don’t do it on your own, let us help you! Also, visit our private mortgage page today, to learn more about how we can help you: http://www.homebasemortgages.ca/private-mortgages/