Many renters fear they will never be able to buy a house in Canada: Poll
Posted June 23, 2022 8:43 am.
It’s a nervous time for homeowners and those who want to get into the housing market in Canada, according to a new poll.
Conducted by Canada Life, an insurance and wealth management company, the poll found almost half of respondents say they fear they’ll be renting indefinitely, and those who are already homeowners are feeling very stressed.
The combination of rising interest rates and a relatively hot market continue to cause problems. Many say they don’t have enough income to qualify for a mortgage, and aren’t able to come up with the substantial down payment.
For aspiring homeowners, those issues have left many wondering if they’ll ever be able to put up a “Home Sweet, Home” sign.
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One in five believes they’ll never be able to buy and three-quarters also believe it’s a bad time to purchase.
Overall, younger Canadians are feeling more pessimistic.
“Canadians aged 25-29 are two times more likely never to purchase a home or continue renting indefinitely compared to those aged 30-49,” the poll found.
Those who already have bought aren’t feeling much better as they wonder what’s ahead. The poll found homeowners are feeling “cash poor” for a host of reasons.
Part of it is rising interest rates are leading to higher mortgage payments, and then there’s inflation in general.
On Wednesday, Statistics Canada revealed the national inflation rate has hit a four-decade high, at 7.7 per cent.
Read more: Inflation soars to 7.7% in May, highest in nearly 4 decades: Statistics Canada
But even for those who were able to buy with a little help, relying on the so-called “Bank of Mom and Dad” didn’t feel like they had strong financial footing.
“Of those who have provided financial support towards a down payment, almost half say their savings (43 per cent) or ability to invest (48 per cent) have decreased, and about one-in-three will need to modify their retirement plans (24 per cent) or postpone home renovations (32 per cent),” Canada Life said.
Canada Life conducted the survey from May 5 – 11, 2022, with an online sample of n=1,572 Canadian adults who are members of the Angus Reid Forum. The margin of error for a probability sample size of 1,572 is ± 2.5% 19 times out of 20.
