A recent survey by TD Bank Group found that despite a constantly changing homebuying market, Canadians’ desire to own is still strong, with 74 per cent of prospective homeowners surveyed feeling hopeful that in the next five years, they’ll be able to purchase a home. Yet, 58 per cent of these respondents acknowledge it will likely take them at least two years to be financially ready for it.
How prospective buyers are getting ready
To achieve their homeownership dreams, 56 per cent surveyed are reducing non-essential expenses, 52 per cent are planning to invest more of their money, 32 per cent plan to work with a financial professional on a homeownership plan, and 23 per cent are taking out loans.
As well, eight per cent are looking into co-homeownership and purchasing property with someone other than a romantic partner, like a friend or family member.
Barriers
Besides affordability issues, other barriers to homeownership cited include market uncertainty and lack of familiarity with the mortgage and homebuying process.
The survey found that 83 per cent of Canadians were not very confident in their ability to follow current market trends or don’t follow the market at all. About the latter, 85 per cent are not very comfortable with it, while 95 per cent have concerns with the process.
As well, 53 per cent of prospective buyers say they’d be more confident in keeping up with the housing market if they had access to quick advice from a professional.
“Navigating the mortgage and homebuying process can be overwhelming for many Canadians. Our survey shows that 46 per cent have felt stress, 41 per cent have felt anxious and 34 per cent have experienced frustration navigating it,” says Natasha Struminikovski, associate vice president, Homeowners Journey at TD.
“For Canadians looking to achieve the dream of homeownership, it’s important to remain patient, stay informed, seek out professional advice and have a plan. Having these steps in place can help to ease the stress or uncertainty Canadians may be feeling and can also act as a guide for prospective homebuyers along their journey to homeownership.”
A changing homebuying experience
The survey found that, of current homeowners polled, 82 per cent purchased their home over six years ago. Among them, 82 per cent said they found the process of buying a home easy, with 64 per cent indicating that the ease they experienced with the homebuying process was due to their ability to secure the house that they wanted within their budget.
This paints a much different picture than what current prospective buyers shared.
“The survey results tell us that most Canadians who went through the mortgage and homebuying process at least six years ago felt it was relatively easy, with many finding they were able to afford their desired home.
Today, the reality is quite different for many Canadians, with 76 per cent of prospective homeowners saying they are concerned about the current house prices and 61 per cent citing concerns around the current interest rate environment. With all the challenges prospective homebuyers face in 2024, access to trusted advice is needed now more than ever,” adds Struminikovski.
Get more details here.
Source link
This article was complied with AI assistance and reviewed by an editor. More information can be found in our T &C
