A large portion of baby boomers in Canadian cities think their children can’t afford to wait for them to die. A significant number of Canadians aged 52 to 71 are planning to or have already given their children living inheritances to buy property, according to a new survey. The survey was geared toward residents of Vancouver, Calgary, Toronto and Montreal. In Vancouver alone, 36 per cent of respondents said they have given or will give a living inheritance. Overall, 60 per cent of givers said the gift will coincide with a specific trigger, such as the sale of their financial investments (21 per cent), the sale of their primary home (17 per cent) or receiving an inheritance themselves (14 per
Housing demand across the province will face increasing headwinds in 2018," said Cameron Muir, BCREA Chief Economist."A rising interest rate environment combined with more stringent mortgage stress tests will reduce household purchasing power and erode housing affordability." The 5-year qualifying rate is forecast to rise 20 basis points to 5.15 per cent by Q4 2018, and the new qualification rules for conventional mortgages will erode purchasing power by up to 20 per cent. "Given the rapid rise in home prices over the past few years, the effect of these factors will likely be magnified." Click here for full article
