In recent months, Canada has been grappling with a severe housing affordability crisis that’s causing uncertainty among its citizens. A recent survey conducted by Mortgage Professionals Canada (MPC) has shed light on some alarming statistics regarding Canadians’ beliefs and attitudes towards homeownership. Here are the key takeaways from the survey:
Doubts About Homeownership: According to the MPC survey, a staggering 48 percent of Canadians who currently do not own a home do not believe they will ever be able to purchase one. This figure represents a significant increase from six months ago when it stood at 33 percent, highlighting the growing pessimism about homeownership.
Housing Affordability Crisis: The survey results underscore the pressing issue of housing affordability in Canada. As Lauren van den Berg, President, and CEO of MPC, notes, Canadians are facing an ongoing crisis with no apparent relief in sight.
Impact of Rising Interest Rates: Higher interest rates are adding to the challenges faced by potential homebuyers. A striking 77 percent of non-homeowners indicated that they would adjust their purchase plans due to increased borrowing costs, with 30 percent stating that they might delay their home purchase altogether.
Mortgage Holders Under Pressure: The survey revealed that an increasing number of mortgage holders are considering selling their homes because they can no longer afford their mortgage payments. This figure has risen to seven percent, up from just two percent a year ago. Additionally, 72 percent of first-time buyers indicated that interest rates were having a significant impact on their financial situation.
Upcoming Renewals: Another concerning aspect highlighted in the survey is the impending wave of mortgage renewals. Nineteen percent of mortgage owners anticipate a renewal in the next year, a number expected to jump to 65 percent over the next three years. This suggests that Canadians will face further challenges when it comes to renewing their mortgages.
In light of these findings, it is crucial for Canadians to be proactive in addressing their homeownership concerns. Speaking with a mortgage broker early on, especially in the context of upcoming renewals, is advised.
The MPC survey, conducted online between June and July, gathered responses from 1,949 participants, providing valuable insights into the current state of homeownership in Canada. As the country grapples with these challenges, policymakers and stakeholders must work together to find solutions that break down the barriers to homeownership and ensure a brighter future for aspiring Canadian homeowners.
In the face of this growing concern, it’s clear that the conversation around housing affordability in Canada needs to continue, with an emphasis on finding practical solutions to help citizens achieve their dream of owning a home.
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