As Canada struggles with a housing affordability crisis, the number of Canadians who believe they will never purchase a home is on the rise.
A recent survey from Mortgage Professionals Canada (MPC) found that as of this summer, 48 per cent of Canadians who don’t own a home do not believe they ever will. That figure has risen 15 per cent from six months ago, and is up from 33 per cent a year earlier.
“Canadians are facing a housing affordability crisis with little sign of easing in sight,” Lauren van den Berg the president and chief executive officer of MPC, said in a Wednesday press release on the findings.
“We hear this every day from our members right across the country, and that is why we continue to advocate for policies that break down the barriers to homeownership.”
INTEREST RATE IMPACT
Higher interest rates are also delaying purchases for first-time home buyers. The survey found that 77 per cent of non-homeowners said they would adjust their purchase plan because of higher borrowing costs and 30 per cent said they will “delay plans to purchase altogether.”
Other findings included an increase in the number of mortgage holders considering selling their homes because they are unable to afford their mortgage payments. The survey highlighted that this figure increased to seven per cent, up from two per cent a year ago, while 72 per cent of first-time buyers indicated interest rates were “having a material impact on their situation.”
The release said that elevated interest rates will present further challenges for homeowners at renewal and that a “wave of renewals” is looming.
Survey results showed that 19 per cent of mortgage owners anticipate a renewal in the next year, a number that will jump to 65 per cent over the course of the next three years.
“The most important step you can take is to talk to a mortgage broker early on, especially if you are concerned with renewal,” van den Berg said.
Results were derived from an online survey conducted on behalf of MPC by Bond. Responses were gathered between June and July, with a total of 1,949 responses.