Despite concerns about affordability, homeownership continues to be an important goal and a great source of pride for Canadians, according to a CIBC poll released on Monday.
The poll found that 63 per cent of those surveyed with children at home say they plan to help their kids with a down payment someday, with 79 per cent citing fears about future home affordability for their children. Owning a home remains a top goal for many non-homeowners (71 per cent). Most mortgage holders (82 per cent) and renters (64 per cent) are concerned about how inflation and rising rates will affect their ability to make mortgage payments or keep up with rental costs.
“Many Canadians recognize that homeownership could be out of reach for their children, unless they have help with a down payment,” said Carissa Lucreziano, Vice-President, Financial and Investment Advice, CIBC. “Being able to help your children save for a home is a great gift, however you need to be aware of how it can impact your own finances such as effectively managing your cashflow, paying down your own debt or saving for retirement.”
The poll found:
- 66 per cent of homeowners say they are likely to stay in their home longer than expected, with 40 per cent saying they may consider selling their home when economic conditions stabilize;
- Only 31 per cent of people polled say they are in their “forever home;”
- Among all homeowners, 30 per cent say they are likely to take advantage of the newly available multi-generational home renovation tax credit over the next five years;
- 37 per cent of homeowners wish they had bought their home when mortgage rates were lower and 30 per cent wish they had sold their home during the recent housing market peak.
The poll found that most recent first-time homebuyers are buying previously owned homes vs. purchasing new builds:
- 59 per cent purchased a previously owned home (e.g., semi-detached, detached or townhome)
- 15 per cent purchased a pre-construction home through a builder or contractor
- 15 per cent purchased a previously owned condominium
- 7 per cent purchased a pre-construction condominium through a builder or contractor
CIBC poll also found:
- The most common actions prospective homeowners are taking to afford their home include reducing spending (37 per cent), setting a monthly budget (33 per cent), putting large expenses on hold (31 per cent), adjusting their home-buying expectations (23 per cent), working overtime, or taking extra jobs (22 per cent). Top sources of funding for a down payment include:
- 55 per cent plan to use funds from a regular savings account
- 28 per cent plan to use funds from their Tax-Free Savings Account (TFSA)
- 22 per cent say they will use the proceeds from the sale of their existing home
- 25 per cent plan to use their Registered Retirement Savings Plan (RRSP) funds through the Home Buyers’ plan
- 16 per cent plan to receive a gift from a relative
- 16 per cent plan to receive a loan from a relative
(Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He works as well as a freelance writer for several national publications and as a consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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