Nearly one-third (32%) of Canadians complained that saving for a down payment was the greatest obstacle that keeps them out of the housing market, according to a new survey from CPA Canada and BDO Debt Solutions.
Among the survey’s respondents, another 30% said the ongoing cost of mortgage payments was their main obstacle to owning a home, while 10% admitted they preferred the flexibility of renting.
The survey also detailed a generational divide where three-quarters (74%) of Canadians aged 55 and older own their homes, compared to 63% of those aged 35 to 54 and only 31% for Canadians aged 18 to 34.
The survey also determined that 43% of respondents identified the high cost of living as their top financial challenge, with another 14% citing the need to pay down debt.
“Like sucking the oxygen out of a room, rising housing costs in Canada leave little left for consumers to spend in the overall economy,” says David-Alexandre Brassard, chief economist at CPA Canada. “High down payments restrict access to real estate investments and exacerbate wealth inequality, leading to social consequences.”
“The dream of owning a first home is slipping away for many Canadians,” added Nancy Snedden, president at BDO Debt Solutions. “With the cost of living on the rise, saving for a home has become increasingly challenging. It’s concerning that only 2% of non-homeowners in Canada are able to make their emergency fund a financial priority, while many are relying on credit to cover their expenses.”
The survey was conducted from Feb. 7-10 among 1,590 randomly selected Canadians adults.
If you can’t afford a down payment, what will you do if your HVAC needs to be replaced, your appliances break? If you have no savings, life’s obstacles will lead you into foreclosure. Get a second job and save more money. Stop looking for handouts from taxpayers!!