There are nine million millennials in Canada, representing more than 25% of the population. Born between 1980 and 1999, the eldest are in the early to mid stages of their careers.

For millennials, the Fear of Missing Out – dubbed “FOMO” – epidemic is influencing their buying purchasing decision. It is human nature to search for inclusion, to mimic the perceived greatness of those around us. And it seems that this is also the case in the current Canadian real estate market.

66% of Canadian millennials have expressed a desire to buy a home within a year, but 30% of the cohort said that they found managing the down payment particularly troublesome as they had less than $10,000 in savings. Crucially, 10% of those polled stated that they had no savings whatsoever.

Looking at the Vancouver market, a down payment study by Generation Squeeze suggests it will take an average full-time wage earner ($47,178) 23 years to scrounge up for a 20% down payment on a house in Metro Vancouver. Just a generation ago it took 5 years to save for a 20% down payment on the average home in Vancouver.

The minimum price of admission to home ownership in Canada is currently set at 5% for homes under $500,000. The average first-time buyer in Vancouver now needs more than a decade to save for this minimum mark.

We’ve come up with for you, some creative ways to come up with the 5% down payment you need. Keep in mind that if you are putting less than 20% as a down payment, you will also need to provide confirmation that you will have funds available to cover closing costs. The lender will request a bank statement or proof that you have at least 1.5% of the purchase price set aside towards closing costs.

Saving for a down payment in Vancouver may seem impossible, but it’s not once you put your mind to it. If you are looking for some inspiration, read one of our latest success stories from one of our past clients. With no financial help whatsoever from their parents, local couple Peter and Krista, who are in their mid-20s, were able to scrounge together $25,000 over three years to purchase their dream condo in North Vancouver. Peter and Krista are now living rent-free and are looking forward to building equity with every mortgage payment made.

Get in touch to see how much home you can qualify for with what you have currently saved.