Homeownership feels out of reach for 76 per cent of Canadians who don't own property: CIBC Poll

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

Kira Smylie, CIBC Communications & Public Affairs, 416-980-2949 or [email protected]