Tanja Beja, Global TV Reporter: “Vancouverites already have the highest debt levels in the country. Average Vancouver Income is $45K, but it takes almost $72K to qualify for a standard condo. So how are first time buyers getting in? This mortgage broker says that about half are turning to ‘the Bank of Mom and Dad’.”
Ryan McKinley, Vancity Mortgage Broker – “It seems there has been more of an increase… as property values have risen.. parents are definitely involved in helping their kids out in any way they can.”
Beja: “That’s how bartender Jenny Fong got her place. Lacking the savings she needed Jenny’s parents bought her this condo. She now pays them monthly rent.”
Jenny Fong: “I don’t have a lot of lee-way… a lot of friends are like: “you’re just paying your parents back”.. I’m like, “No it’s not that simple, they are pretty strict”. You know, they’re just like a bank.”
VO: The difference is there is no interest, which can add hundreds of thousands of dollars.
- Anecdote extracted from ‘Generation How?’ clip on Global TV, 4 Oct 2011 (3:00 onwards). [Thanks to Greenhorn, for the video archive]
Let’s hope that Jenny’s parents aren’t overextended. It would be interesting to know their ages and their total net-worth:RE ratio. – vreaa