I’ve been a mortgage broker for many, many years. I have seen very little in regards to first time home buyers putting 20% down (+closing costs) recently. But this can be attributed to the high rate of appreciation. Most people opt for 100% financing believing their property will increase and they can refinance at 80% in less than two years. They use what would be a down payment (savings) to offset a mortgage payment they can’t afford. I don’t know the # of first time buyers that have done this. But it seems significant from those that have come past my radar.
We will see what happens as the market turns south. 100% financing guidelines will become much more stringent and many people will have to bring a down payment to get into their first property.
