A new poll done for CIBC says roughly three-quarters of Canadians who don't own a property say entry to the housing market feels out of reach. A new home is displayed for sale, in Ottawa on Tuesday, July 14, 2020. THE CANADIAN PRESS
In Toronto, a recent poll sheds light on the daunting challenge facing aspiring Canadian homeowners. Published by CIBC on Thursday, the survey reveals that a staggering 76 percent of non-homeowners across the country perceive buying a house as an unattainable goal. Despite this discouraging sentiment, more than half of them remain steadfast in their desire to own a home someday.
The poll underscores the financial hurdles obstructing the path to homeownership for many Canadians. Approximately 70 percent of non-homeowners cited being priced out of the market, while 63 percent expressed difficulty in saving up for a down payment.
Coinciding with the release of the survey findings, the federal government made announcements aimed at easing the burden for first-time homebuyers. Finance Minister Chrystia Freeland unveiled plans to extend the maximum amortization period to 30 years for insured mortgages on new builds, effective immediately. Additionally, the government intends to raise the maximum amount that first-time homebuyers can withdraw from their RRSPs to $60,000, a significant increase from the previous limit of $35,000. These measures are slated to take effect on April 16, coinciding with the release of the federal budget.
The survey also exposes the strain felt by current homeowners amid high interest rates. Half of homeowners with variable-rate mortgages admitted to cutting back on everyday expenses, with 21 percent allocating lump sum payments towards their mortgage. Meanwhile, 45 percent of homeowners with fixed-rate mortgages anticipate scaling back on expenses as their loans approach renewal within the next two years.
For many prospective buyers, the prospect of homeownership hinges on external financial support. A significant 55 percent of non-owners revealed that they can only envision affording a new home through inheritance or financial assistance from family. Additionally, one in four non-homeowners expressed openness to the idea of purchasing a home with friends as a means of overcoming financial barriers.
Conducted by Maru Public Opinion on behalf of CIBC in February, the poll surveyed a random sample of Maru Voice Canada panelists in two waves. It offers valuable insights into the widespread challenges and aspirations within the Canadian housing market.
