A new survey reveals that almost half of Canadians who are renters plan to stay indefinitely, not knowing when they will be able to enter the real estate market and if it will ever be possible for them.
Renters surveyed by the insurance company Canada Life cited lack of money, fear and uncertainty as reasons for refraining from buying a property.
Nearly 73% of respondents say now is a bad time to buy a home and 17% of respondents said they would never buy a home.
While 79% of respondents think home ownership is a good investment, 64% think they won’t be able to buy a house unless they have financial support from other people, such as members of their family.
The survey also reveals that Canadians aged 25 to 29 are twice as likely to continue renting indefinitely as those aged 30 to 49.
Rising interest rates
As the Bank of Canada continues to raise interest rates, homeowners could face even more difficulty as mortgage payments rise.
The central bank has raised its key rate by half a point twice in recent months, taking it to 1.5% in June, and its governor, Tiff Macklem, has hinted that he is ready to act with more force.
CIBC economists Avery Shenfeld and Andrew Grantham believe the Bank of Canada’s key rate will hit 2.75% this year, before slowing growth and inflation convince the bank to end rises.
Source: Radio-Canada
