Homeownership trends shift as young buyers use loans and investments

Younger generations in India and Canada are adopting diverse financial strategies to manage the rising costs of homeownership.

In India, Gen Z is increasingly utilizing home loans and parental support to enter the property market. A survey by BASIC Home Loan of over 7,400 individuals indicates that the average age of home loan applicants has dropped from above 35 to 25. Many younger borrowers are opting for digital application processes and are looking toward affordable peripheral locations rather than expensive city centers to manage monthly installments.

In Canada, homeowners are exploring investment strategies to offset high mortgage costs. With average monthly mortgage payments reaching approximately $2,867, some are looking toward dividend-paying stocks on the TSX to generate supplemental income. For example, investing in high-yield energy infrastructure companies like Enbridge is cited as a potential method to cover a portion of monthly housing expenses through dividend yields.