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TORONTO — Three in four Canadians who don’t own a property say buying a home feels out of reach, a new poll shows.
A CIBC survey, published Thursday, shows 76 per cent of Canadians who haven’t yet entered the housing market feel homeownership is a far-off dream, but more than half of them are holding on to their goal of one day owning a home.
At least 70 per cent of non-homeowners said they were priced out of the market while 63 per cent said it is hard to save for a down payment, the survey shows.
The survey comes on the same day the federal government announced longer amortization periods for certain first-time homebuyers.
The federal government will allow 30-year amortization periods on insured mortgages for first-time homebuyers who purchase new builds, Finance Minister Chrystia Freeland announced Thursday.
Freeland also said the government will nearly double the amount first-time homebuyers can withdraw from RRSPs to buy a home to $60,000. That’s up from $35,000, to take effect April 16, the day the federal budget is set to be released.
As well as prospective homebuyers feeling priced out of the market, the CIBC poll also shows many homeowners have been cutting back on expenses amid high interest rates.
Half of homeowners with a variable-rate mortgage say they’ve been cutting back on everyday expenses, while 21 per cent have put a lump sum amount toward their mortgage.
At least 45 per cent of homeowners with fixed-rate mortgages anticipate they’ll cut back on daily expenses as their loans come up for renewal in the next two years.
The poll also found that 55 per cent of non-owners said they’ll only be able to afford a new home with an inheritance or gift from their family.
One in every four non-homeowners also said they’re considering buying a home with friends to afford homeownership.
The poll was conducted for CIBC in February by Maru Public Opinion. It was conducted in two waves among a random sample of Maru Voice Canada panelists.
This report by The Canadian Press was first published April 11, 2024.
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The Canadian Press
