Canadians feeling pinched from inflation and rising interest rates: CIBC Poll

Homeowners are focused on energy efficiency improvements to combat rising rates, while non-homeowners are seeking solutions to housing affordability

TORONTO, May 31, 2022 /CNW/ - A new CIBC survey finds Canadians are feeling the pinch of inflation and rising interest rates. Among homeowners who have a variable rate mortgage, 36 per cent say they are likely to switch to a fixed rate in the next 12 months. Meanwhile 63 per cent of renters or those living with family say they are concerned about the impact rising rates will have on their ability to purchase a home in the future.

"From the grocery store to the gas pump, Canadians are feeling the effects of inflation," said Carissa Lucreziano, Vice-President, CIBC Financial and Investment Advice. "And while the impacts are affecting homeowners and non-homeowners alike, both groups are faced with very different challenges. Homeowners are looking to find smart ways to save on the costs of home upkeep, while non-homeowners continue to seek solutions should their rent climb, as well as assessing whether they should enter the housing market."

The hot market for home improvement continues:

Just over one-third (37 per cent) of Canadian homeowners say they are making plans for home improvements to their property in the next 12 months.

Home energy efficiency is a hot topic among homeowners with 70 per cent agreeing that climate change resilience and environmental sustainability are important factors to consider when undergoing a home renovation, and 59 per cent of those who made or plan to make energy efficient improvements did so in an effort to save money.

When it comes to financing energy efficient home improvements, 60 per cent of homeowners say they would consider using government programs or rebates to support their upgrades.

Renters continue to seek solutions to housing affordability:

For renters, the heated housing market continues to be an obstacle to home ownership with 69 per cent saying they never expect to own a home and 37 per cent indicating that home ownership is simply not an achievable goal for them.

Current housing prices combined with rising interest rates are the top barriers for non-homeowners to enter the housing market with 44 per cent saying they are unable to save enough for a down payment and 58 per cent indicating they won't be able to afford a home without a partner or additional income from someone else.

"There's no doubt Canadians are faced with a challenging housing market, but whether you're starting to save for a down payment and have questions about affordability or are wondering if you can afford to renovate your dream home, we have experts who can help you achieve your home ambitions," added Ms. Lucreziano.

Other Key Findings:

• 49 per cent of non-homeowners indicated they need help understanding the total costs associated with purchasing a new home and obtaining a mortgage
• Nearly a third (28 per cent) of homeowners and those in the market for a home would use their existing mortgage advisor or bank to obtain a new mortgage
• 88 per cent of those who have had a recent conversation about a new or existing mortgage with an advisor at a bank were satisfied with their experience

About CIBC

CIBC is a leading North American financial institution with 11 million personal banking, business, public sector and institutional clients. Across Personal and Small Business Banking, Commercial Banking and Wealth Management, and Capital Markets 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  https://www.cibc.com/en/about-cibc/media-centre.html

Disclaimer:

From March 28^th to March 31^st , 2022 an online survey of 1521 randomly selected Canadian adults who are Homeowners, Renters or Co-Inhabitants who are Maru Voice Canada panelists was executed by Maru/Blue. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3%, 19 times out of 20. 

SOURCE CIBC

Kira Smylie, 416-980-2949 or [e-mail]