Young, first-time home buyers are opting for older homes as a more affordable first step to home ownership, according to a TD Canada Trust survey released Monday.
Almost half of first-time home owners aged 18 to 34 bought a house that was at least 21 years old, compared with only 27% of home owners aged 55 and up.
"While older homes often sell for a more attractive price, first-time buyers need to keep in mind that the purchase price and mortgage payments are not the only costs associated with owning a home," said Chris Wisniewski, TD's group product manager of real estate secure lending. "An older home may need more work, which means putting some money aside for repairs and renovations."
The survey also confirmed that while the location of a home was a top priority, younger Canadians were more likely to opt for a home in the city as opposed to one in the suburbs.
The survey found that while young Canadians intend to purchase a condominium as their first home, the majority actually bought a house.
About 75% of first-time buyers across all generations purchased a house.