Nearly half of non-homeowners in Canada think they'll never buy a home
Non-homeowners in Canada are losing any hope that they’ll never own a home.
This is according to the Semi-Annual State of the Housing Report by Mortgage Professionals Canada.
The 2023 mid-year report states that 48% of non-homeowners in the county feel like they will never be able to purchase a primary residence — a 15-point increase from the last survey conducted at the end of 2022.
Over three-quarters (77%) of non-homeowners added that they would change home-buying plans because of high interest rates, and 30% noted that they’d delay their plans to buy a home altogether.
As for Canadians who currently own a home, the report highlights that the share of those considering selling because they can’t afford their mortgage has increased over three-fold from 2% in 2022 to 7% in 2023.
The majority of homeowners (72%) also noted that interest rates are having a “material impact” on their current financial situation.
As for how Canadians are handling their mortgage payments, the report indicates that almost one-third of mortgage holders are paying a higher amount than required.
Canadians with a fixed-rate mortgage are keeping with their required payment but at a higher rate than those with a variable mortgage.
The report also highlights what’s to come with interest rates, noting that the Bank of Canada (BoC) will most likely “pause the rates at 5%” until mid-2024, when signs of a recession become more apparent.
It predicts that the BoC will ease rates to a more neutral level by 2027, keeping average mortgage rates at 6.1% for the remainder of this year.
In September, the BoC announced it was holding key interest rates at 5%, with the Bank Rate at 5.25% and the deposit rate at 5%.
Canadaās economy has entered a period of weaker growth, which is needed to relieve price pressures, noted the Bank of Canada during its September announcement.
The online survey was conducted on behalf of Mortgage Professionals Canada by Toronto-based marketing consultant Bond between June 26 and July 12, 2023. A total of 1,949 respondents across Canada participated in the survey.
Follow Channels and Categories