High mortgage payments, down payments keep buyers out of housing market: Poll

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OTTAWA — One-in-three Canadians say saving up for huge down payments are keeping them out of the housing market.

Results of a new poll released Tuesday by Chartered Professional Accountants of Canada (CPA Canada) and BDO Debt Solutions highlight a bleak mood among Canadians hoping to purchase a home, with 30% of Canadians saying the ongoing high costs of mortgage payments are keeping them out of the market, while 10% say they prefer the flexibility of renting over buying.

“Like sucking the oxygen out of a room, rising housing costs in Canada leave little left for consumers to spend in the overall economy,” said CPA Canada’s Chief Economist David-Alexandre Brassard.

“High down payments restrict access to real estate investments and exacerbate wealth inequality, leading to social consequences.”

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Of those polled, 43% said Canada’s ongoing affordability crisis is their top financial challenge, while 15% indicated paying down debt is becoming a big issue — all contributing to a situation where everyday Canadians are too concerned with keeping their heads above water to save for buying a home.

“The dream of owning a first home is slipping away for many Canadians,” said BDO’s Nancy Snedden.

“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.”

Other takeaways include wide age gaps in home ownership — nearly three-quarters of those over 55 own their home, while only 63% of those aged 35-54 are homeowners, dropping to just 31% for those 18 to 34.

bpassifiume@postmedia.com
X: @bryanpassifiume