The dream of homeownership lives on for Canadians, according to a recent poll conducted by CIBC.
Homeownership remains a top goal for 71 per cent of non-homeowners, while the majority of mortgage holders (82 per cent) and renters (64 per cent) express concerns about inflation and rising rates affecting their ability to meet mortgage payments or rental costs.
Homeowners happy to stay put
Given the current state of the housing market, a significant proportion of homeowners (66 per cent) revealed their inclination to stay in their homes for longer than originally planned.
Economic conditions will be a decisive factor for 40 per cent of homeowners who may consider selling their properties once stability returns. Around 31 per cent of respondents declared their current homes as their “forever home.”
Furthermore, the poll indicated that 30 per cent of homeowners intend to take advantage of the recently available multi-generational home renovation tax credit within the next five years.
However, a notable portion of homeowners expressed regret regarding the timing of their house purchases. Thirty-seven per cent wished they had bought their homes when mortgage rates were lower, while 30 per cent regretted not selling their homes during the recent housing market peak.
Helping the next generation achieve homeownership
The survey also revealed that 63 per cent of respondents with children intend to assist them with a down payment in the future, with 79 per cent expressing worries about the future affordability of homes for their children.
Recognizing the potential unattainability of homeownership for their children without assistance, many Canadians are prepared to lend a helping hand.
Carissa Lucreziano, vice president of Financial and Investment Advice at CIBC, emphasized the significance of this gesture while urging individuals to consider the impact on their own financial situations.
“Many Canadians recognize that homeownership could be out of reach for their children unless they have help with a down payment,” Lucreziano recognizes.
Preferences for previously owned homes
The survey also sheds light on the preferences of recent first-time homebuyers, with the majority (59 per cent) opting for previously owned homes such as detached, semi-detached or townhomes.
Fifteen per cent purchased pre-construction homes through builders or contractors, while the same percentage chose previously owned condominiums. Only seven percent of first-time buyers opted for pre-construction condominiums.
Renters struggling with future rental costs
The growing unease about affordability is a shared sentiment among both homeowners and renters.
While some renters (46 per cent) feel more capable of meeting their rent payments compared to a year ago, the majority (64 per cent) still express concerns about keeping up with future rental costs.
