Poll Shows Majority of Canadians Believe Home Ownership is Out of Reach Despite Lower Interest Rates

June 11, 2024 TruthUSA

Despite the Bank of Canada’s decision to drop interest rates, it’s not enough for most Canadians to get into the housing market, according to a recent poll.

On June 4 the Bank of Canada dropped its key interest rate by 0.25 percent from five percent to 4.75 percent. It was the first cut in four years.

However, in a June 11 survey by polling firm Ipsos, eight in 10 (82 percent) of respondents said that even if interest rates drop further, homeownership will still be unattainable for them. Sixty-two percent said they’ve given up on ever owning a home.

Seventy-eight percent of Canadians said that owning a home is now “only for the rich” while 63 percent said they will continue to stay on the sidelines of the housing market and won’t buy or sell a home because of high interest rates.

Six percent said interest rates would need to drop by over one percent before they could consider buying a home, while 25 percent said rates would need to decline between one and 3.99 percent. Another 10 percent said rates would need to drop by four percent.

The poll also found that only 23 percent said the government was doing enough to tackle housing affordability in Canada.

Homeowners Concerned

Canadians who currently own a home are also concerned about what high rates mean for their family’s ability to keep their home, according to Ipsos. One-third (33 percent) said they were worried they would lose their home due to high mortgage rates.

When it comes to renewing a mortgage, 67 percent of homeowners said they would opt for a fixed-rate mortgage while 30 percent said they would choose a variable rate.

In the Leger survey, younger homeowners reported being under the most financial pressure. Sixty-eight percent of those between 18 and 34 years old said they were very or somewhat financially stressed because of their mortgage. Just 18 percent of those aged 35-54 said they experienced stress over a mortgage and 15 percent of those 55 and older reported financial stress due to mortgage costs.

Overall, 62 percent of Canadian homeowners say they feel financially stressed about their mortgage, while another 38 percent said they are not stressed, the Leger poll said.

The Ipsos online survey was held from June 7-10 with 1,001 participants 18 and older participating. It is accurate to within +/- 3.8 percentage points, 19 times out of 20.

Leger interviewed a group of Canadians aged 18 and older between June 7 to June 9, with 1,528 people from an online panel participating in the study.

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