Top 4 Millennial Home-buying Myths

Millennials are currently the largest demographic cohort, but there are still a lot of misperceptions about their habits, especially when it comes to home buying. As a result, many people in this age group are getting the wrong idea about whether they should buy a house or whether they even can. Learning the truth behind some common myths can help Millennials better understand the best choices when buying a home:

"Millennials Just Don't Buy Houses."

Many pundits believe that Millennials are breaking from the habits of their parents are are foregoing home purchases altogether. However, the facts show something different. On average, Millennials tend to rent about six years before venturing into homeownership. During their parents' era, the average was only one year less. So, Millennials who choose to buy are not oddballs. They have plenty of company.

"Student Loan Debt Means People Can't Buy Houses."

The average Canadian graduates with around $26,000 in student loan debt. For those who have a hard time finding well-paying work in their field after they are out of school, balancing student loan payments with other obligations can be a challenge. However, when people are able to manage the payments on their debt and still have enough for a mortgage payment, banks are usually willing to work with them.

"Down Payments Are Too Expensive."

In previous generations, the rule of thumb was that buyers needed to put down 20% of a home's price in order to qualify for a loan. However, newer loan products can require far smaller down payments. In some cases, a down payment of just 5% for homes under $500,000 is possible. Additionally, there are programs that allow qualified buyers to borrow part of all of their down payment total. Between these factors, down payment totals are far more reachable.

"It's Probably Just Cheaper to Rent."

People who are unfamiliar with home loans may decide that they save money by renting. However, in most markets, average mortgage payments are lower than rent. Potential buyers should check their local markets to see if they could save by buying instead of shelling out rent each month.

With all the myths and misconceptions about Millennial home buying, it pays to do the legwork and sift out the untruths from the facts. By financially educating themselves, East End home-buying Millennials can empower themselves to become savvy homebuyers and begin building their financial futures.