Majority are waiting for deeper rate reductions or better conditions
A new survey revealed that while many Canadians are interested in buying a home or refinancing their mortgage, the majority remain hesitant to take action even if the Bank of Canada announces a rate cut in October.
Despite the anticipation of a potential rate drop, 66% of Canadians considering buying or refinancing said they are unlikely to move forward within the next 90 days, according to EveryRate.ca.
What’s holding Canadians back?
Interest rates are a significant factor in homebuying and refinancing decisions, but the survey suggested that even a modest rate reduction may not be enough to prompt action for many.
Of the 47% of respondents who said they are "currently considering" or "very interested" in buying or refinancing, only 34% would take action within the next 90 days. This group, primarily younger Canadians aged 18-34, first-time homebuyers, and those with higher incomes (over $100,000), are more prepared to take advantage of rate cuts.
Residents of Alberta are the most eager, with many ready to act quickly if rates drop, while 27% of Ontario residents say they would likely make a move within the next 90 days.
Of those surveyed who are “very interested” in buying or refinancing, only 10% said they would make a move immediately after a rate cut. Another 24% would consider entering the market within 90 days. However, 21% are holding out for further rate cuts, and 45% indicated that rate changes wouldn’t affect their decision at all.
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Meanwhile, 66% of this group are still on the fence, waiting for more substantial rate cuts or better economic conditions. This group includes many older Canadians (55+), lower-income households, and residents of Manitoba and Saskatchewan.
Why Canadians are waiting
Despite interest in homebuying or refinancing, many Canadians are holding back due to a combination of factors beyond just mortgage rates. High housing prices and broader economic uncertainty are influencing these decisions.
While a rate cut might nudge some prospective buyers into action, the survey suggested that many are looking for more dramatic improvements before they feel comfortable making a move.
"While it's promising that a segment of Canadians are poised to act on upcoming rate drops, the reality is that over two-thirds are still waiting on the sidelines," EveryRate.ca co-founder Andy Hill said in the report. "This tells us that minor rate adjustments aren't enough. Canadians are looking for more substantial changes before they feel confident to jump into the market.”
The survey, conducted by Leger from September 27-30, included 1,626 Canadian adults and was weighted to reflect the Canadian population. While the results come from a non-probability sample, the margin of error for a comparable probability sample would be ±2.4%, 19 times out of 20.
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