According to a recent article in the National Post, single homebuyers are need in of some help, as home prices have become higher and the rules for obtaining home loans stricter.
The article relays that, without the 35-year amortization in place anymore, part of new regulations effective since March, single home seekers now qualify for significantly less property than potential dual-income homebuyers.
Prospective single homebuyers need to lock in low interest rates with their lenders while they search, lest the price of their mortgages, in addition to other expenses, become too great.
The article recommends that co-signers, such as parents, can be an effective way to avoid problems for single homebuyers.
"By co-signing or guaranteeing the debt the parent is obligated as much as their son or daughter with the payments," Stan Falkowski, senior vice president of Mortgage Intelligence in Toronto, told the news source. "Helping with the down payment may make more sense. We're looking at the baby boomers. Their kids are now buying homes. If parents can afford it and they have assets, it wouldn't be a bad time to gift a down payment."
With lenders becoming stricter about mortgage standards, and using income as a basis a significant portion of their decisions, having a large down payment can be incredibly helpful, the article relays.