High prices in Canada’s housing market would appear to affecting new and recent investors alike. A new survey conducted for Canada Life found that almost half of those who rent say they will continue renting indefinitely. At the other end, among those who are providing financial support to those who require down payment assistance, almost half say their ability to save and invest have decreased.
More, the survey of 1,572 Canadian adults found that one-in-three who have provided material support to would-be homeowners will need to modify their retirement plans.
“Canadians are at an investment crossroads,” says Canada Life’s executive vice president, Paul Orlander.
The survey found that almost three quarters, 73 per cent say it’s a bad time to buy a house. Their top three reasons for not getting into the market include high prices, lack of money for a down payment and not having enough income to qualify for a mortgage.
Among those surveyed, 79 per cent agree home ownership is a good investment but 64 per cent say new homeowners won’t be able to break into the market unless they have financial support from others. Of those who have purchased a home, 24 per cent say they feel house poor today.
