Soaring interest rates and overall affordability serve as major roadblocks for many hopeful home owners
Approximately half of Canada’s non-homeowners indicated a belief that they’re unlikely to ever buy a home, according to a new survey by Chartered Professional Accountants of Canada.
This is despite the actual national average home price falling from a peak of over $816,000 in February to $746,000 in April.
On the other hand, only 21% of non-homeowners think that it’s very likely that they’ll make a home purchase, while 29% see it as somewhat likely.
For nearly 90% of non-homeowners, steadily rising rates are the most significant challenge in their ownership aspirations, while 84% pointed to down payment costs as another major hurdle. Taxes and mortgage payments (81%) and income stability (69%) were other major factors.
Read more: How Canada’s market shift is affecting purchases and renewals
Even current owners were not immune to the wide-ranging impacts of the current volatility in the economy and the global financial system, CPA Canada said.
For 60% of owners, the major challenge is affording necessary renovations, followed by 40% citing the difficulty of keeping up with mortgage payments and taxes and 35% struggling with payment for utilities.
