Homeownership Feels Out of Reach for Many Canadians
A new CIBC survey reveals that 76% of Canadians who don’t own a home feel that buying a property is unattainable. The poll shows that the majority of non-homeowners are struggling to save for a down payment, with 63% citing this as a major barrier.
The survey comes as the federal government announced measures to help first-time buyers. Starting April 16, the maximum amount that can be withdrawn from RRSPs for a home purchase will increase from $35,000 to $60,000. Additionally, first-time buyers of new-build homes will be able to secure 30-year amortization periods on insured mortgages.
However, the CIBC poll suggests these steps may not be enough to address the affordability crisis. Over 70% of non-owners said they were priced out of the market entirely.
The survey also found that high interest rates are taking a toll on existing homeowners. Half of those with variable-rate mortgages have been cutting back on expenses, while 45% of fixed-rate mortgage holders anticipate similar cutbacks when their loans come up for renewal.
With the path to homeownership appearing increasingly difficult, the poll found that 55% of non-owners are relying on family support, such as inheritances or gifts, to afford a home. One in four are even considering buying with friends to make it work.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
