Young Canadians delaying homeownership until next year
Over half of young Canadians (55 per cent) believe that it makes sense to delay a home purchase until next year. Forty-six percent say that their mortgage is using up too much of their income, according to the 18th Annual RBC Homeownership Study.
The poll found that younger Canadians are more likely to purchase a home than other age groups, as 43 percent (aged 18-34) are looking to buy in the next two years, compared to the national average of 29 percent. Older Canadians are much less likely to buy in the next two years, including those aged 35-54 (29 percent) and over-55 (17 percent).
When looking for advice on purchasing a home, younger homebuyers (aged 18-34) are more likely to use real estate websites (55 percent) or family (48 percent) and friends (35 percent). The majority of older Canadians, aged 45-54 and over-55, are more likely to rely on a real estate agent as their choice for advice, at 71 percent and 74 percent respectively.
According to the poll, younger Canadians (aged 18-34) are most concerned about having a good down payment (23 percent) and rising real estate prices (23 percent) when looking to buy a home. Canadians aged 35-54 are most concerned with rising prices, as 24 per cent are worried about mortgage rates and 25 per cent about home prices increasing. Canadians over the age of 55 list increasing home prices (36 percent) as their biggest worry when deciding to purchase a home.
While 43 per cent of younger Canadians (aged 18-34) are paying off their mortgage faster than they expected, two-thirds (66 per cent) say it is larger than they would like it to be.
What types of homes are Canadians looking to buy? (According to the 18th Annual RBC Homeownership Poll):
Younger Canadians (ages 18-34)
- Detached house 59 per cent
- Condo/loft 15 per cent
- Semi detached house 10 per cent
- Townhouse 10 per cent
Mid-range Canadians (ages 35-54)
- Detached house 71 per cent
- Condo/loft 10 per cent
- Semi detached house eight per cent
- Townhouse seven per cent
Older Canadians (55 and older)
- Detached house 68 per cent
- Condo/loft 15 per cent
- Semi detached house five per cent
- Townhouse five per cent
