Most are holding onto their goal of one day
owning a home, and pushing back timeliness citing pricing,
unpredictability of interest rates, inflation and economy
TORONTO, April 11,
2024 /CNW/ - A new CIBC poll finds that entry to
the housing market feels out of reach for the majority (76 per
cent) of Canadians who don't own property, yet half of all
non-owners (56 per cent) say they are still holding on to the goal
of one day owning their own home.
Among non-owners, overpriced markets (70 per cent) and the
inability to save for a down payment (63 per cent) are cited as the
main barriers to achieving their homeownership goal. At the same
time, only 28 per cent of non-owners say they are currently saving
for a down payment.
"Housing affordability is a challenge across the country and
many Canadians could use guidance on how to make their
homeownership dream a reality," said Carissa Lucreziano, Vice-President, Financial
Planning and Advice, CIBC. "About 80 per cent of those we surveyed
said they need advice to help them navigate the market. Working
with a trusted advisor can help prospective buyers get a clear
picture of their financial situation through customized planning
and recommendations, providing a realistic pathway to achieving
their homebuying ambitions."
Current homeowners are making
adjustments to manage their mortgage payments
Homeowners indicate they are taking prudent steps to manage
mortgage payments now and down the road. Half of variable rate
mortgage holders (51 per cent) say they've been cutting back on
everyday expenses, while 21 per cent are putting lump sum payments
toward their mortgage.
Meanwhile, the majority of homeowners with fixed rate mortgages
are preparing themselves as their mortgages come up for renewal in
the next two years. Many (45 per cent) of them anticipate they'll
cut back on daily expenses, while 34 per cent say they plan to shop
around for the best rates.
Other Key Findings:
- 55 per cent of non-owners say they'll only be able to afford a
new home with an inheritance or gift from their family.
- 48 per cent of Canadians are considering moving outside a major
city to get more for their money.
- 26 per cent of Canadians say they would consider buying a home
with friends to afford homeownership.
Disclaimer
These findings are from a Maru Public Opinion online survey
undertaken exclusively for CIBC and fulfilled by the sample and
analyst experts at Maru/Blue. The results were produced in two
waves among a random sample of Canadian adults who are Maru Voice Canada panelists and then weighted to
be representative of the Canadian adult population. Each
probability samples of each size carry with them an estimated
margin of error (which measures sampling variability). Wave 1 was
among homeowners with either a fixed (n=154 +/-7.9%) or variable
(n=131 +/- 8.6%) mortgage, and among those who intend to purchase a
new home in the next two years (n=396 +/-4.9%) from February 23-27, 2024. Wave 2 was among 1526
Canadians (+/- 2.5%) from February 28-29,
2024.
About CIBC
CIBC is a leading North American financial institution with 14
million personal banking, business, public sector and institutional
clients. Across Personal and Business Banking, Commercial Banking
and Wealth Management, and Capital Markets and Direct Financial
Services businesses, CIBC offers a full range of advice, solutions
and services through its leading digital banking network, and
locations across Canada, in the United States and around the world.
Ongoing news releases and more information about CIBC can be found
at www.cibc.com/ca/media-centre.
SOURCE CIBC