The study delved deeper into the factors that hinder renters from becoming homeowners, and not unexpectedly, the possibility of rising interest rates was named by 89% of respondents as the greatest barrier to home ownership.
Respondents also cited other significant difficulties:
- 84% said being able to afford a down payment is a hurdle;
- 83% say renovations are an obstacle financially, but an equal amount say house availability in their selected area is a problem;
- An equal number of renters surveyed (81%) cited an inability to afford taxes and mortgage payments;
- 69% were concerned about their financial stability.
Doretta Thompson, CPA Canada’s financial literacy leader, stated that, “Home ownership remains a priority for many yet what it takes to get there for so many Canadians is becoming increasingly challenging,”
“The popular wisdom used to be to buy the largest house you could possibly afford, however it’s important to define your personal goals, balance them with means and look to multiple ways to ensure financial security. Owning a physical asset isn’t the only definition of success,” she added.
Women are more likely than men to perceive home ownership as a difficulty with 93% of women, compared to 85% of men, concerned about interest rate increases. Additionally, 86% of women, compared to 81% of men, find it difficult to save for a down payment.
