Buying and selling a home comes with a lot of questions. (THE CANADIAN PRESS/Sean Kilpatrick)

COVID-19 is reshaping what first-time homebuyers are looking for: BMO survey

Still, 40 per cent of potential first-time home owners think now is a good time to buy

The pandemic has reshaped the needs of first-time homebuyers in Canada but COVID-19 isn’t causing too much hesitation in buying, a Bank of Montreal report suggests.

According to results from a recent survey, conducted by Pollara Strategic Insights, found that the average first-time home buyer is looking to spend about $432,000 with more than 40 per cent of the 801 adults polled saying they believe now is a good time to buy.

Broken down by province, that stat increases to 60 per cent in Alberta and the Prairies while dropping to 33 per cent in Ontario and B.C. where prices have stayed relatively status quo through the pandemic.

The biggest impact COVID-19 has had on the market among aspiring home owners is the type of property looking to be purchased, the survey found.

Twenty nine per cent of those surveyed said they’re changing their search from a major city to the suburbs or a rural area. As well, with working from home becoming more prevalent, a quarter of respondents said they’re moving their search away from a condo or townhome to a detached home.

Hassan Pirnia, head of personal lending and home financing for BMO, says it is encouraging to see Canadians maintaining their optimism in the housing market.

“While many buyers are viewing the market favourably, households are facing stronger headwinds than they have in the recent past,” Pirnia said. “As buyers look to enter the market, we should expect to see a continued trend where they are exploring different financial options to help with the purchase.”

The size of the mortgage first-time buyers are looking to take out has also been influenced by COVID, the survey found.

About half of buyers have had to tap into their down payments to help cover unexpected costs over the last several months, BMO said. A quarter of first-time homebuyers have said that they will have to take out a larger mortgage – with Ontario and B.C. buyers saying they more the most likely to opt for mortgages at 30 and 26 per cent, respectively.


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Real estate

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Such sweetness with all this candy. Dylan Kennedy 7, with his mom Kerri Kennedy volunteer at the Halloween Fest Committee event to bag candy for students in SD 52 on Oct. 19. (Photo: K-J Millar/The Northern View)
How sweet it is

Bags of candy were assembled by more than 25 Halloween Fest Volunteers for distribution to S.D. 52

Ashley Wilson officer in charge of Prince Rupert Marine Communications and Traffic Services said radio officers in Prince Rupert are the eyes and ears of the Canadian Coast Guard with the job as an ocean first responder being like a 911 dispatcher. (Photo: K-J Millar/The Northern View)
Coast Guard calling for radio officers

Deadline for radio officers applications extended specifically for Prince Rupert and area residents

FILE - Nathan Cullen speaks to media in Smithers, B.C., Friday, February 28, 2020. THE CANADIAN PRESS/Jonathan Hayward
More calls come in for Cullen’s removal as NDP candidate

Gitxsan Hereditary Chiefs demand Cullen’s removal. Ellis says, There’s no place in B.C. for racism

An election tussle has now erupted over the long-dismantled Skeena Cellulose pulp mill on Watson Island, shown here in a 2013 photo. (File photo The Northern View)
Wilkinson, Horgan tagged over pulp mill file and legal battle

Case dates back to attempt to re-open closed Skeena Celluose pulp mill

ANBT 2021 is still in the planning, Peter Haugan event organizer said on Oct. 13. In the 2020 ANBT, Hydaburg’s T.J. Young drives along the baseline against Prince Rupert’s Brady Johnston. Hydaburg would defeat P.R, but fell to New Aiyansh in the next round. (The Northern View file photo)
All Native Basketball Tournament 2021 still in the planning

“If we cannot run it with our fans, we cannot run the tournament” - Peter Haugan

B.C. NDP Leader John Horgan arrives at Luxton Hall to cast their votes in advance polls for the provincial election in Langford, B.C., Monday, Oct. 19, 2020. THE CANADIAN PRESS/Chad Hipolito
Pandemic election prompts voter suppression claims by B.C. Liberals

‘These emergencies require in us a maturity that has been lacking in politics for so long’

UBC geoscientists discovered the wreckage of a decades-old crash during an expedition on a mountain near Harrison Lake. (Submitted photo)
Wreckage of possibly decades-old airplane crash discovered on mountain near Harrison Lake

A team of UBC geoscientists discovered the twisted metal embedded in a glacier

The official search to locate Jordan Naterer was suspended Saturday Oct. 17. Photo courtesy of VPD.
‘I am not leaving without my son,’ says mother of missing Manning Park hiker

Family and friends continue to search for Jordan Naterer, after official efforts suspended

A bear similar to this black bear is believed responsible for killing a llama in Saanich on Oct. 19. (Black Press Media file photo)
Bear kills llama on Vancouver Island, prompting concerns over livestock

Officers could not track the bear they feel may not fear humans

Bernard Trest and his son Max, 10, are concerned about B.C.’s plan for students in the classroom. He was one of two fathers who filed a court application in August to prevent schools from reopening if stricter COVID-19 protections weren’t in place. That application was dismissed last week. (Contributed photo)
B.C. dad pledges to appeal quashed call for mandatory masks, distancing in schools

Bernard Trest and Gary Shuster challenged health, education ministries’ return-to-school plan

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

RCMP crest. (Black Press Media files)
RCMP cleared in fatal shooting of armed Lytton man in distress, police watchdog finds

IIO spoke to seven civillian witnesses and 11 police officers in coming to its decision

A 34-year-old man was treated for a gunshot wound in Williams Lake Monday, Oct 19, 2020. (Angie Mindus photo - Williams Lake Tribune)
Williams Lake man treated for gunshot wound after accidental shooting: RCMP

Police are reminding residents to ensure firearms are not loaded when handling them

A injection kit is seen inside the newly opened Fraser Health supervised consumption site is pictured in Surrey, B.C., Tuesday, June 6, 2017. THE CANADIAN PRESS/Jonathan Hayward
B.C. records 127 fatal overdoses in September, roughly 4 each day

Vancouver, Surrey and Victoria continued to see the highest numbers of overdoses

Most Read