Skip to content

Canadians still dream of homeownership, despite affordability concerns

Canadians are determined to make their dreams of homeownership a reality, not only for themselves but also for future generations.

Despite the ongoing challenges of housing affordability in Canada, owning a home remains a significant aspiration and a point of pride for many Canadians.

According to a recent CIBC poll, a staggering 63% of respondents with children expressed their intention to assist their kids with a down payment in the future, driven by concerns over the future affordability of housing. This unwavering homeownership ambition highlights the enduring value placed on owning a place to call one's own.

For a majority of non-homeowners (71%), the desire to own a home still reigns supreme. However, concerns about inflation and rising interest rates have crept into the minds of both mortgage holders (82%) and renters (64%), who worry about their ability to meet mortgage payments or keep up with rental costs.

Carissa Lucreziano, Vice-President of Financial and Investment Advice at CIBC, emphasized the significance of assisting children in saving for a home while considering its impact on personal finances.

"Being able to help your children save for a home is a great gift," she said, "however, you need to be aware of how it can impact your own finances, such as effectively managing your cashflow, paying down your own debt, or saving for retirement."


Current homeowners are not looking to move anytime soon

Given the current housing market conditions, a considerable 66% of homeowners revealed their inclination to extend their stay in their current homes. Economic stabilization appears to be a crucial factor influencing the decision of 40% of homeowners, who may consider selling their homes at that time.

Merely 31% of respondents felt that they had found their "forever home." Among all homeowners, 30% say they are likely to take advantage of the newly available multi-generational home renovation tax credit over the next five years. 

The poll also shed light on homeowners' reflections, with 37% expressing regret about the timing of their house purchase, wishing they had bought when mortgage rates were lower. Additionally, 30% revealed a sense of remorse about not having sold their homes during the recent housing market peak.


Preference for previously owned homes: first-time buyers and housing options

Among recent first-time homebuyers, the poll revealed a preference for previously owned homes rather than new builds. Approximately 59% of respondents purchased a previously owned home, while 15% opted for pre-construction homes through a builder or contractor. Furthermore, 15% chose previously owned condominiums, and 7% purchased pre-construction condominiums through a builder or contractor.


Prospective homeowners taking action to save for home ownership

Despite concerns surrounding housing affordability, Canadians continue to proactively save for their dream homes. Prospective homeowners are employing various strategies, including reducing spending (37%), establishing monthly budgets (33%), delaying major expenses (31%), adjusting home-buying expectations (23%), and seeking additional work or overtime (22%).

Key funding sources for down payments include regular savings accounts (55%), Tax-Free Savings Accounts (28%), proceeds from the sale of existing homes (22%), and the Home Buyers' plan utilizing Registered Retirement Savings Plan (RRSP) funds (25%). Additionally, 16% plan to receive gifts or loans from relatives.

Renters also expressed cautious optimism, with 46% feeling better equipped to pay their rent compared to the previous year. However, 64% still harbour concerns about their ability to keep up with future rental costs.

"A trusted advisor will take a holistic view of your finances, help identify your goals, and create a realistic plan to guide you on the path toward achieving your ambitions," added Lucreziano, emphasizing the value of seeking expert guidance in navigating the journey to homeownership.

The dream of homeownership remains unshakable for Canadians, surpassing the challenges of housing affordability. Despite worries about inflation and rising rates, Canadians are determined to make their dreams a reality, not only for themselves but also for future generations.