Gen Z and Millennial homeowners brace for their first mortgage renewals
Despite soaring housing prices and economic uncertainties, Millennials and Gen Z Canadians are holding onto their aspirations of homeownership, according to the latest Scotiabank Housing Poll.
Although over half of Millennials (55%) and Gen Z (58%) feel that buying a home is currently out of reach, 58% of Canadians aged 18 to 43 remain determined to purchase a home within the next five years.
Over half of Millennials and Gen Z (56%) reported financial strains due to the economy, causing some to postpone their plans to buy. Affordability concerns have risen by 12% since 2021, particularly among older Canadians, while the younger age group (18-34) has consistently faced affordability challenges.
With many younger Canadians now reaching the mortgage renewal stage, the poll found that nearly three-quarters (72%) of Gen Z and 48% of Millennial homeowners will be renewing their mortgage for the first time.
This contrasted with only 14% of Gen X and 10% of Boomers who are at the same stage, showing the growing presence of younger generations in the housing market. Despite recent decreases in interest rates, 68% of Canadians across generations remain concerned about renewal rates, with nearly half (44%) prioritizing competitive rates.
"Canadians continue to face barriers in today's challenging housing market," said Tracy Gomes, senior vice president of real estate secured lending at Scotiabank. “While homeownership may feel out of reach for many young Canadians, their determination to achieve it remains unwavering."
The Scotiabank poll revealed a clear demand among younger Canadians for accessible and transparent guidance on homeownership. Sixty-three percent of Gen Z and 54% of Millennials are seeking clearer homebuying information from financial institutions, while 27% expressed uncertainty about the steps involved in purchasing a home.
Digital accessibility is especially important to Gen Z, with 35% preferring an entirely online mortgage application process.
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Scotiabank’s findings also revealed some generational shifts in homeownership aspirations. Thirty-seven percent (37%) of Gen Z and 31% of Millennials have advanced their homebuying plans thanks to improved financial conditions over the past year, compared to only 15% of Gen X and 10% of Boomers.
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