Homeownership feels like a distant dream for the majority of Canadians who do not already own a home, according to a new CIBC poll.
76% of Canadians feel that entry to the housing market feels out of reach. Only 56% of non-homeowners said they still hope to own a home one day.
The online Maru Public Opinion survey was undertaken by CIBC and surveyed Canadians who owned a home, intended to purchase one within the next two years, and those who don’t own one.
“Housing affordability is a challenge across the country, and many Canadians could use guidance on how to make their homeownership dream a reality,” said vice-president of financial planning and advice Carissa Lucreziano.
Canadians who do not own a home listed their biggest barriers to achieving their dreams of homeownership.
70% of non-homeowners cited overpriced markets. 63% said they could not save enough money for a downpayment; however, only 28% said they were currently saving for a downpayment.
Non-homeowners weren’t the only Canadians to note their concerns. Even those who owned houses said they were adjusting to an ever-increasingly tough market. Homeowners surveyed were split amongst variable-rate and fixed-rate mortgage holders.
51% of variable-rate mortgage holders said they’ve had to cut back on daily expenses, and only 21% said they are putting lump sum payments towards their mortgage.
Homeowners on fixed-rate mortgages fear the sacrifices they will need to make with upcoming mortgage renewals in the next two years. 45% said they’ll have to cut back on daily expenses, while 34% said they will explore the market for the best rates.
Canadians who don’t own a home have varying ideas for how to enter the market.
55% of non-homeowners said they will only be able to enter the market with the help of nepotism — an inheritance or gift from their family. 48% of Canadians are considering leaving major cities to get more bang for their buck. 26% of Canadians are considering buying a home with friends to split the cost and make things affordable.
True North previously reported that the Canadian Maru Household Index showed that 18% of Canadians would default on making payments on major loans or a mortgage within the two months succeeding March.
Maru Public Opinion released its Household Outlook Index for April, showcasing Canadians’ current 60-day outlook. Only 10% of Canadians said they would be able to buy a house within the next two months, while 10% also said they would declare bankruptcy. 37% of Canadians said that they will struggle to make ends meet. Only 89% of Canadians said they would have enough food for themselves or their family.
The future looks grim, as the Bank of Canada announced Wednesday that the interest rate would hold at 5% for the fifth consecutive time.