Most Canadians believe that becoming a homeowner should be achieved before you get to 40 according to a new report, but saving for a down payment is a key challenge.
The 2018 Zoocasa Housing Trends Report looks at aspirations and obstacles for today’s homebuyers and found that 65% of respondents think anywhere between the ages of 26 and 35 should be the ownership goal.
Just 7% think ownership should be after the age of 40.
The study reveals that the homeownership dream is still alive with 86% saying it is an important milestone, up slightly compared to last year’s survey.
Buying a home can be stressful (46% said so) but not compared to some other life milestones.
Just 19% think that homebuying is more stressful than having a baby and 30% think it’s more stressful than saving for retirement.
The top obstacles for potential homebuyers
Rising home prices remain the top obstacle to homebuying cited in the survey especially in BC and Ontario, although nationally this is less of an issue than a year ago (42% vs 54%).
Finding the right property is second (37% vs 39%) and saving for a down payment is third (34% vs 35%).
For 20% of respondents, getting financing for their home purchase is a major obstacle, while 9% cite their debt or bankruptcy.
First-time buyers struggle with down payment
Saving for a down payment is a major issue for potential first-time buyers, especially in regions where rents are high.
A third of respondents said they are currently renting because they are saving for a down payment and 29% think renting is cheaper.
More than a quarter say they can’t afford a mortgage and 26% also say they can’t save enough for a down payment (this rises to more than half in BC).
Rising interest rates won’t deter 40% of buyers
Interest rate rises won’s stop many buyers from their homeownership intentions.
The survey shows that 40% said the BoC hikes had no impact on their intentions, although 26% said it would delay their plan and 18% thought rate hikes make them feel homeownership is out of their reach.