Survey reveals financial strains, knowledge gaps, and emotional toll
Homeownership remained a top priority for Canadians despite the challenges of the current housing market, according to a new survey by TD Bank.
Despite rising home prices, interest rate uncertainty, and a lack of knowledge about the home buying process, 74% of prospective buyers remain hopeful about achieving their homeownership dreams within the next five years.
"The survey results tell us that most Canadians who went through the mortgage and home buying process at least six years ago felt it was relatively easy, with many finding they were able to afford their desired home,” said Natasha Struminikovski, associate vice president of homeowners’ journey at TD. "Today, the reality is quite different for many Canadians."
However, the road to homeownership may be longer than anticipated, with 58% of these aspiring buyers expecting it will take at least two years to be financially prepared.
While 82% of current homeowners surveyed purchased their homes over six years ago and found the process relatively easy, today's prospective buyers face a different reality.
Rising house prices and a complex mortgage landscape have left 85% feeling uncomfortable with the process and 95% expressing concerns about various aspects, from affordability to understanding mortgage options.
This lack of knowledge and confidence has taken a toll on buyers' emotional well-being, with many reporting feelings of stress (46% of respondents), anxiety (41%), and frustration (34%) during their homebuying journey.
"Navigating the mortgage and home buying process can be overwhelming for many Canadians," Struminikovski said in the report. "For Canadians looking to achieve the dream of home ownership, it's important to remain patient, stay informed, seek out professional advice, and have a plan."
Many Canadians are taking proactive measures to address these challenges. About 56% are cutting back on non-essential expenses, 52% are planning to invest more, and 32% are seeking guidance from financial professionals. A small but growing number (8%) are even considering alternative approaches, such as co-ownership with friends or family.
Read more: High housing costs drive urban Canadians to cheaper markets
The survey also revealed a gap in financial planning and knowledge-seeking behaviours. Approximately 69% of prospective buyers don't have a personalized financial plan for homeownership, and 72% of Canadians haven't sought advice from professionals or online resources.
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