Mortgages Soar For Older Canadians

Mortgages Soar For Older Canadians

Mortgages soar for older Canadians in their 80s and 90s.

And it has come as a surprise to many in the industry.

The reason?

The volume of new mortgages has been slowing down in recent months.

This is because of higher interest rates.

And because lenders are making it tougher to get mortgages for purchasing a home.

This is due to a government policy of trying to slow down Canada’s hot housing market.

So why are mortgage applications soaring for Canadians in the 73 to 93-year-old bracket?

It is apparent that some younger Canadian homebuyers, have discovered a brand new strategy.

Get the grandparents or mom and dad to bankroll buying a house.

As well people in the 73 to 93 age bracket are using mortgages to finance their retirement.

The findings are contained in a report by credit score company TransUnion.

Mortgages Soar For Older Canadians

For Canadians – age 73 to 93 – issued mortgages rose a whopping 63 per cent.

For Baby Boomers – 54 to 72 – issued mortgages rose 18 per cent for the same period.

That was for the first three months of this year.

“We hear of parents and grandparents supporting their children and grandchildren, whether it’s student loans or buying a house,” Matt Fabian, director of financial services research and consulting for TransUnion Canada, told Global News.

Meanwhile, mortgages issued to millennials – born 1982 and 2004 – fell by 19 per cent.

And for the youngest homebuyers, Technology Z — 18 to 23 – mortgage applications dropped by 22 per cent.

Older generations could be re-mortgaging or borrowing against their home equity in order to “support retirement or to financially support younger generation family members,” the TransUnion report says.

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