Home is where the help is: Despite financial concerns, more than half of Canadians polled would financially support loved ones when purchasing homes or renting during the pandemic Français
Canadians willing to provide assistance would provide an average of just over $60,000, with fewer than half expecting to be paid back
TORONTO, Dec. 3, 2020 /CNW/ - COVID-19 may be keeping families distanced, but many are close financially, with a large proportion of Canadians stating they are willing to help out their adult children or relatives fulfill their dreams of homeownership. This is despite current financial realities brought on by the pandemic, according to the RBC Home Buying Sentiment Poll.
The poll, which provides updates on current perceptions and sentiments related to the Canadian housing market, found that 47% of Canadians surveyed are worried their financial position may deteriorate over the next year. Even though over three-quarters of respondents are concerned about the financial impacts of COVID-19 (76%) and are trying to limit their spending (76%), roughly one-third are willing to help their child or an immediate family member pay for a new home (31%). Almost one-half are also willing to help their child or family member with rent if asked (46%).
In fact, a quarter of Canadians polled stated they were having to provide more financial support to their family as a result of the pandemic (25%). When called upon, Canadians that were willing to provide financial assistance were willing to give their child or an immediate family member an average of $60,513 to support their home purchase, with only nearly half expecting to be paid back (49%).
"As more of us continue to work and spend time at home, many Canadians want to continue on their path to homeownership," said Amit Sahasrabudhe, Vice-President, Home Equity Finance, Products and Acquisitions, RBC. "Over the last few years, and throughout the pandemic, it has become harder to enter the market in many cities nationwide, especially when trying to do it alone. Even during these uncertain times, what we are seeing is that families are continuing to rally around each other and financially support their loved ones as they work towards buying a home."
Overall, when trying to purchase a home, only 24% of respondents said they would do so by themselves. Instead, the majority stated it was almost impossible to buy a home on their own (58%) or afford rent (60%) in their area, with 60% calling house prices unaffordable in their region.
The research also found that two-thirds of Canadians polled expressed concerns about how the next generation, and their children, would be able to afford a home (66%), with over half thinking that affordability will only worsen in the near future (53%). Despite this, the vast majority of respondents still believe that homeownership is a good investment (81%), with only 29% agreeing it makes more sense to rent than buy right now.
"Canadians have a lot more to consider when buying a home than they did a year ago, but they don't have to do it alone," concluded Sahasrabudhe. "Whether you are just starting on your home buying journey or are trying to navigate the current environment, there are digital resources, tools and expert support to help you find a plan that works for you."
According to Sahasrabudhe, there are a number of things that Canadians can do to help themselves get started on their path to homeownership:
- While the way we connect may have changed since the pandemic started, the importance of getting expert advice hasn't. Buying a home is one of the biggest purchases you will ever make and there is no substitute for doing your research and having the right tools and conversations around how purchasing a home fits within your overall financial plan. RBC Mortgage Specialists are available by phone to help you through the process. Digital tools like RBC Homebuyer Advantage can also act as a one-stop resource with step-by-step guides, tools, calculators and special offers to help you whether you are just starting out or ready to make a move.
- Buying a home at any time requires balancing your personal finances with external factors. Personal factors like your income, down payment savings, and amount of personal debt can all influence your ability to purchase the home you want. External factors like current real estate prices and interest rates will also affect your home-buying choices. Whether you are buying a home for yourself or helping out a family member, the first thing to do is learn how much you can afford. The RBC True House Affordability tool can give you a personalized estimate on how much you may be able to afford, while RBC's Home Value Estimator can help you determine the estimated value of your current home to help you build your home-buying budget.
National and Regional Data Tables
Question |
Total |
British |
Alberta |
Prairies |
Ontario |
Quebec |
Atlantic |
I believe that home price affordability will worsen in the near future. (Agree) |
53% |
49% |
39% |
46% |
58% |
56% |
45% |
I am worried that my financial position may deteriorate over the next year. |
47% |
44% |
60% |
51% |
48% |
41% |
47% |
I am concerned about the financial impacts of COVID-19. (Agree) |
76% |
69% |
79% |
68% |
77% |
80% |
72% |
I am currently trying to limit my spending. (Agree) |
76% |
74% |
78% |
79% |
75% |
75% |
77% |
If asked, I would currently be willing to help an immediate family member/my |
31% |
37% |
28% |
32% |
33% |
27% |
20% |
If asked, I would currently be willing to help an immediate family member/my |
46% |
52% |
50% |
43% |
45% |
47% |
40% |
If asked, I would currently be willing to help an immediate family member/my |
51% |
57% |
53% |
52% |
51% |
50% |
41% |
I am having to provide more financial support to my family because of the pandemic. |
25% |
30% |
24% |
26% |
28% |
18% |
15% |
If asked, how much money would you be willing to give an immediate family |
$60,513 |
$55,321 |
$59,958 |
$35,516 |
$71,663 |
$54,351 |
$33,350 |
If I were to provide an immediate family member/my child with financial |
49% |
41% |
53% |
55% |
48% |
51% |
53% |
When purchasing a new home, who do you think you'd buy it with? (By myself) |
24% |
29% |
21% |
23% |
25% |
23% |
22% |
I believe that it's almost impossible to buy a home on your own in my area. |
58% |
64% |
44% |
34% |
66% |
61% |
41% |
I believe that it's very hard to afford rent in my area. (Agree) |
60% |
77% |
55% |
51% |
64% |
45% |
64% |
House prices in my area are unaffordable. (Agree) |
60% |
77% |
44% |
42% |
68% |
54% |
45% |
I worry about how the next generation, and my children, will be able to afford |
66% |
65% |
70% |
61% |
71% |
59% |
64% |
I believe that home ownership is a good investment. (Agree) |
81% |
81% |
79% |
77% |
82% |
81% |
80% |
I think it makes more sense to rent than to buy right now. (Agree) |
29% |
21% |
23% |
30% |
34% |
31% |
24% |
About the RBC Home Buying Sentiment Poll
The RBC Home Buying Sentiment Poll was completed between November 6-11, 2020, polling 1,070 respondents using Leger's online panel. The margin of error for each of these samples was ±3.0%, 19 times out of 20.
About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 86,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 34 other countries. Learn more at rbc.com.
We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.
SOURCE RBC Royal Bank
Michael Jesus, Paradigm Public Relations, [email protected], 647-783-1807; Arjun Lombardi-Singh, RBC Communications, [email protected], 647-531-4045
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