The Real Estate Intelligent interview series features BC’s most prolific professionals shaping the local real estate industry.
AN INTERVIEW WITH SCOTT GINGLES, FOUNDER & MANAGING DIRECTOR, NEST MORTGAGE
Part 3 of 5: Equity
Demographic demand and affordability are playing a very active role in reshaping key markets, especially the secondary markets across the Lower Mainland. Ryan Lalonde asks Gingles about recent market transactions; where they are coming from, and how homeowners may plan their next purchase for the future.
RYAN LALONDE: How much of today's market is being fueled by leveraging of home equity versus the sales of property to afford the next transaction? Are multiple transactions from families at any one period coming from borrowing more equity to drive a sale? Or is it coming from previous equity out of a sale?
SCOTT GINGLES: A recent CMHC survey indicated that 25% of the homes purchased over the last 24 months used existing equity from a previous home to transact. 11% used RRP’s and savings and, less than we expect, 8% used gifted funds from a family member - we probably see room for that to increase over the next 12 to 24 months.