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L'accession à la propriété au Canada : Faites-vous partie des 33 % de non-propriétaires qui affirment qu'ils ne seront jamais propriétaires?

L'accession à la propriété au Canada : Faites-vous partie des 33 % de non-propriétaires qui affirment qu'ils ne seront jamais propriétaires?
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  • Tvine
| Avr 19, 2023
Révisé, Juin 8, 2023
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    Escalating home prices and unfavorable mortgage conditions have left many Canadians feeling uncertain about their financial capability to attain homeownership. With each passing year, the number of Canadians who feel financially capable of owning a home in the near future seems to decrease. Between financial inaccessibility and the necessary years of savings stretching further into the future, the challenge of achieving home ownership in Canada begins to seem insurmountable to non-homeowners. Luckily, despite the current numbers not inspiring much hope, this article is here to offer a more positive outlook to help non-homeowners take the step towards ‘potential buyer’ territory. 


    Key Highlights

    • 33% of Canadian non-homeowners believe that they will never be able to own a home
    • 27% of older millennials don’t see homeownership being an option for them in the future
    • Due to increasing rates, recent first-time buyers reported struggling to make monthly mortgage payments, despite getting help from their families for down payments. 

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    Where Home Ownership in Canada Stands 2023

    Canadian home ownership can be qualified using various intersections of the population. In this section, we will give over some of these segments, including, purchase intent, age, and types of mortgages.

    Purchase Intent

    According to a survey conducted by Oxford Economics, the largest group of non-homeowners with intentions of purchasing a home plan to do so within the next five years. This group accounts for 23% of those surveyed, followed by those who have plans set for the next two years at 15%. It’s interesting to note that 12% have aspirations to buy a home within the next ten years, while 10% are open to buying sometime after the next decade. However, it seems that only 8% of individuals are actively planning to purchase a home in the upcoming year.

    Age groups

    A significant portion of young Canadians are choosing to opt out of the traditional path of homeownership. Nationally, 13% of those aged 18 to 34 indicated they will never purchase a home, while 27% of those aged 35 to 54 felt the same. While some may attribute this trend to financial burden or inconveniences associated with homeownership, it is undeniable that younger generations are opting for new ways of living and financial stability, which does not include traditional homeownership. 

    In line with these numbers, 14% of first-time homebuyers who participated in the survey reported struggling to make monthly payments in light of the Bank of Canada rate hikes, ongoing since March 2022. It is no surprise that 62% of buyers reported asking their families for help with down payment when making their initial home purchase.

    Mortgage Type

    In the world of Canadian mortgages, fixed rates seem to be the favourite option. According to recent data, a whopping 69% of Canadians are opting for a fixed rate mortgage, marking a 3% increase from last year. In contrast, only 25% of borrowers are going for a variable rate option, with a slight decrease from the previous year. With the Bank of Canada raising interest rates, there has been a shift towards fixed-rate mortgages, with approximately 30% of variable rate holders planning to switch to a fixed rate option. However, it’s worth noting that not everyone is jumping on the bandwagon, with 35% of borrowers who are considering a fixed-rate mortgage ultimately deciding to stick with their variable rate option.

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    How Many Canadians Own Homes? 

    Canadian home ownership peaked back in 2011, when 69% of Canadians owned their homes. This number has declined since, dropping to 66.5% by 2022. It is safe to say that Canadian home ownership is on the decline, namely for the younger generations who cannot afford what their parents and grandparents were buying at their age. In fact, discrepancies in age groups are already emergent in comparison to 2011, at the peak of Canadian home ownership. Where 44% of people aged 25-29 owned their homes in 2011, only 36.5% of this age group owned homes in 2021. It is not surprising that rental demand is growing exponentially faster than demand for home ownership. 

    To-Be Canadian Home Owners Lose Confidence 

    The percentage of non-homeowners who believe they will never own a primary residence has increased to 33%, a stark contrast to the 18% recorded at the end of 2021. Although it is disheartening to hear, this number is a fluctuating statistic in accordance with economic cycles. It is important to note that many individuals do not realize that they have options and can, in fact, purchase a home with the right financing strategies. By utilizing the upcoming FHSA, seeking assistance from family members for down payment contributions, exploring alternative financing, finding co-borrowers, or even renting out secondary suites, homeownership can become a reality. There are various pathways to exploring the possibility of owning a primary residence, and with the right guidance and resources, non-homeowners may be able to overcome the seemingly insurmountable barriers to homeownership.

    nesto Expert Advice: Home Ownership is Possible, Here’s How to Do It. 

    We hate seeing so many of you would-be homeowners in a state of perpetual worry. After all, all we do is to be on the bright side of mortgages and get you there, too. So, to help you reignite your homeownership dreams, here are some pointers (for free!) that can get you started. 

    Start saving – in the right places. 

    When it comes to saving for a house down payment, there are a number of options available to you. Depending on your financial situation and goals, you may want to consider saving in a high-yield savings account, regular savings account, certificate of deposit, or even better the tax-free First-Time Homebuyers Savings Account, an incredible option now available to Canadians from April 1st 2023.

    Get to know what you can afford.

    You can look into pre-qualifications to see what you’d be able to afford given your circumstances. Then, you can work backwards to make a plan if it’s less than you imagined. How can you decrease debts? How can you increase your income? Using one of nesto’s many calculators will help you familiarize yourself with the different costs associated with a mortgage and better understand what you can afford.

    Shop. Around. 

    One of the biggest purchases you will ever make in your life is a home, and finding the right mortgage lender is crucial. By taking the time to shop around for the best mortgage rates, you might save thousands over the life of your loan. Don’t settle for the first lender you find. Instead, research several different lenders and compare rates, fees, and loan terms. This way, you’ll be able to find a mortgage that is tailored to your specific needs and budget.

    FAQ

    How many Canadians own their homes?

    According to Statistics Canada, Canadian home ownership peaked back in 2011, when 69% of Canadians owned their homes. This number has declined since, dropping to 66.5% by 2022.

    How can I start saving for a home?

    Look into various savings accounts available to you. You might want to consider saving in a high-yield savings account, regular savings account, certificate of deposit, or even better– the tax-free First-Time Homebuyers Savings Account, an incredible option now available to Canadians from April 1st 2023.

    Final Thoughts

    In conclusion, don’t let numbers wear you down. Economic cycles are constantly shifting and being prepared with a financial strategy can only benefit you in your home buying journey. Non-homeowners don’t need to give up on their dream of owning property in Canada. Making use of all the support services out there can go a long way, so don’t wait to consult a mortgage expert to answer your mortgage questions and guide you through those (not so) scary first steps.


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