2024-03-10 05:00:00
“That’s life.” After her separation, a nurse mother of two children left her two-story house in Montreal, bought 13 years ago with her ex for $160,000, to settle in Granby in a mobile home which cost her $200,000 $.
“I made several offers before managing to get it, it was a terrible bidding war,” remembers Josie Roberge, who purchased her house last September. “It’s war, the market for mobile homes.”
As is often the case with this type of property, she owns the house, but not the land.
“That means I pay a small rent for the land, in addition to my mortgage,” she explains.
“It doesn’t matter, it still costs me less than renting an apartment… plus I have more space and a yard for the children.”
Josie’s payments are $1,200 per month for the house, and the rent for the land is about $200. Not a bad deal, since the cost of a 3 1⁄2 or 4 1⁄2 in the area is around $1,500 to rent.
“It was my best option, but it wasn’t easy,” says the 37-year-old nurse. “I had a good cash down because I had the shares of my old house, bought by my ex. But since I only have one income, I had to have impeccable credit. Without that, I would not have had my loan.”
“You know, I still have a good job, a good income… but on my own, it’s hard to get approved. I can’t even imagine what it’s like for someone who is alone and starting from nothing!”
Borrower’s sketch
Total mortgage loans in the country reached a value of more than $569 billion, with approximately 1,386,000 loans issued between the third quarter of 2022 and the second quarter of 2023, according to the Residential Mortgage Industry Report of the Canada Mortgage and Housing Corporation. Quebec represents approximately 20% of the market in Canada.
Behind this data are thousands of people like Josie Roberge, even if her profile does not quite match that of the average borrower. “Single people still shop around, but let’s say that the price range is a little less accessible than before,” illustrates mortgage broker David Bolduc.
Buyers who already own, like her, represent 10% of the market, according to the 2023 CMHC survey. They are generally between 35 and 44 years old, and are part of a household whose income varies between $60,000 and $105,000 per year. They work, they have children, and they have a preference for individual homes, rather than plexes or condos.
First-time buyers represent 12% of the market, and have roughly the same profile as existing buyers, apart from the fact that they are younger (25 to 34 years old).
According to data from the Professional Association of Real Estate Brokers of Quebec, the average price of resale residential properties sold in Quebec last December was $462,100.
“Can a couple with an annual income of $120,000 afford the same property as before 2020? Absolutely not. But there is still a way to find the right fit despite everything,” comments Mr. Bolduc.
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