Inventory may be shrinking, belts may be tightening and qualifying for a mortgage may be increasingly difficult but that’s not stopping Canadians from vying for home ownership, according to a new survey commissioned by Genworth Canada.
Canadians Would Rather Own than Rent
Ninety per cent of respondents said that despite the work homeownership requires, they would rather own a home than rent. And of those who do own a home, 90 per cent reported that home ownership gave them a heightened sense of emotional well-being.
The poll was completed in partnership with the Canadian Association of Credit Counselling Services (CACCS) and asked 1,507 Canadians questions about their financial well-being and preparedness.
Pressure From Rising Prices
With 64 per cent of respondents reporting feeling that Canadian housing prices will increase in the coming year, many are feeling the push to buy. Fifty-three per cent are worried they may miss out on their perfect house because they have not yet saved enough for a down payment.
Real Estate is Still Top Investment Choice
The rush to buy was also noted by the 21st Annual RBC Home Ownership Poll, which found, among young Canadians in particular, the belief in the value of home ownership holds strong. Eighty-six per cent of Canadians between the ages of 25 and 34 polled feel that owning a house or a condo is a very good investment. That’s up from 78 per cent in 2013.
Bigger Budgets Needed to Enter the Market
So how are prospective first-time Canadians realizing their home ownership goals? They’ve increased their budget to $316,000 from $300K in 2013, according to the BMO 2014 First-Time Home Buyers Report. Thirty per cent are expecting assistance from family and 61 per cent have made reductions in their lifestyle to be able to save more for a downpayment.