According to a recent survey from Scotiabank, interest in buying a home is on the rise for young Canadians.
Nearly 1 in 5 respondents aged 18-34 say the pandemic has accelerated their plans to purchase a home or investment property.
Now, why is that?
HISTORICALLY LOW INTEREST RATES 📉
Interest rates at historical lows have been sighted as one of the key drivers for the surge in buying confidence from young Canadians.
Based on the average mortgage size of $289,000, according to Equifax Canada, today’s homebuyers could save more than $13,000 due to the recent plunge in interest rates compared to if they had purchased back in January.
EXPECTING A DROP IN PRICES 👇
The Scotiabank survey also found that the younger demographic are expecting a drop in home prices more than any other age group.
25% of overall respondents expect a drop in home prices:
- 36% of those 18-34
- 24% of those 35-54
- 17% of those 55 and older
OTHER KEY FINDINGS 🔑
- 1 in 5 Canadians (20%) have had their finances negatively impacted by the pandemic and have had to put their home buying plans on hold.
- 77% of renters say they have no plans to purchase a home in the next two years, despite low interest rates.
- 12% of homeowners are planning to use the equity in the home to finance a renovation
Are you a young buyer looking for your first home or investment property? Give us a call at 705-805-9055 to chat to a team member today!