In the world of real estate, relationships play a significant role in the decisions that prospective homeowners make. According to Perch, a mortgage brokerage based in Toronto, 25 per cent of mortgage applications they receive are from single individuals. This means that the majority of their applicants are coupled up in some form or another. Alex Leduc, the founder and CEO of Perch, explains that pooling multiple incomes or down payment sources has become a necessity for many people to enter the housing market.
One interesting trend that has emerged is the decision of some couples to delay signing marriage papers in order to qualify separately for first-time homebuyer incentives. Michael Son, a realtor with G&E Realty Group, shares a story of a client who had a wedding ceremony but chose to wait before officially tying the knot. By doing so, they were able to apply for first-time homebuyer credits and incentives separately, allowing them to pool their resources and purchase a property together.
Cultural values around relationships also play a role in real estate transactions. Son, who is French-Canadian with Korean ethnicity, notes that many of his clients prefer to keep certain aspects of their finances separate from their partners. In Canada, homeownership tends to favor couples, as two incomes are often seen as more stable than one. Lenders typically view dual-income households favorably, as it reduces the risk of default on a mortgage.
In a competitive real estate market, buyers often need to find ways to stand out. Tania Perizzolo and her fiance, Nick Raposo, decided to submit a personal letter to the seller when purchasing their home in Metro Vancouver. This personal touch, which included a photo and their love story, helped them secure the property in a highly competitive market.
The decision of where to put down roots is also influenced by real estate market dynamics. Perch’s data shows that a majority of clients aged 18 to 39 who closed a mortgage were married or in a common-law relationship. Rosa Sasages and her husband Sean, who purchased their first home in Chilliwack, found that the decision to move to a quieter suburb was influenced by the real estate market. Despite initial concerns, they have no regrets about their decision to buy a home in Chilliwack.
Divorce can be a significant factor in real estate transactions, as it can lead to unexpected defaults or the need to liquidate a property. Planning and budgeting realistically are essential for couples looking to purchase a home together. Seeking guidance from professionals such as mortgage brokers or real estate agents can help couples navigate the complexities of both real estate and relationships.
In conclusion, relationships play a crucial role in the world of real estate. Whether it’s pooling resources to purchase a home, navigating cultural values around relationships, or planning for the future, couples must consider various factors when making decisions about homeownership. By being informed and seeking professional guidance, couples can increase their chances of success in both real estate and their relationships.