One of the country’s big banks has released its latest Real Financial Progress Index. It offers some revealing insights about Canadians’ plans for home ownership.
The survey suggests there are three main sources of financial anxiety for Canadians:
- 83% fear unexpected expenses.
- 81% have concerns about their overall financial situation.
- 71% are worried about housing costs.
Desire is Further Out of Reach
Despite those worries the desire for home ownership remains very high among Canadians. Housing activity has been rebounding across the country after a slow start this year. Both sales and prices have increased. Those gains combined with higher interest rates have, once again, made affordability a key consideration for home buyers.
The survey suggests that a majority of Canadians, 68%, feel that home ownership is further out reach than it was for their parents. This climbs to 71% for 18 to 24 year-olds and 69% for 25 to 34 year-olds. About 65% of 35 to 44 year-olds feel that owning a home is further out of reach.
Buyers are Making New Plans
The survey also indicates that perceptions about the economy have people adjusting their homebuying plans:
- 68% intend to wait until mortgage rates drop before making a purchase.(Others have cited market uncertainty and volatility as keys reason for putting off their purchase.)
- 51% are deferring their purchase because of concerns about the economy.
- 18% intend to wait until 2024 or later.
- 20% do not know when, or if, they will buy.
- 69% plan to hold off refinancing until mortgage rates drop.
The survey also looked at financing options that buyers intend to use when they eventually move ahead with their purchase:
- 52% plan to use personal savings.
- 41% expect to use loans from their financial institution and/or lines of credit to help finance their home purchase.
- 19% will be looking for loans or financial gifts from family, friends and/or others.
- 46% plan to use government assistance programs.
- 32% plan to take advantage of the First-Time Home Buyers Incentive.
- 16% plan to use the Home Buyers' Plan (HBP).