CANADA – As the arrival of spring meets an already strong real estate market, a new poll by CIBC finds that home ownership is as important to millennials (86 per cent) as it is to most Canadians (85 per cent) – yet many millennials are still renting (42 per cent) or living with their parents (21 per cent).
“It’s a myth that millennials don’t want to own their own home. In fact our poll suggests that millennials place as much importance on being a home owner as Canadians in other age groups,” says Barry Gollom, Vice President, Mortgages & Lending, CIBC. “Home ownership is an important milestone to many, and that hasn’t changed even though it has become increasingly difficult to get into the market.”
Of those Canadians who consider home ownership a priority, the majority say it makes financial sense to own a home to build equity and save for retirement (63 per cent), while millennials are most likely to say it’s the sense of personal freedom (59 per cent) that home ownership offers that most appeals to them.
Key poll findings include:
- 85 per cent of Canadians say home ownership is important, including
- 86 per cent of Canadians aged 18-34, of whom 42 per cent rent, 36 per cent own and the rest live at home
- Of those Canadians who say home ownership is important
- 63 per cent say it makes financial sense and is a great way to build equity and save for retirement
- Those aged 18-34 are most likely to say it gives them a sense of personal freedom (59 per cent)
- 15 per cent of Canadians say home ownership is not important, with nearly half (46 per cent) saying it’s too big of a financial burden
Mr. Gollom encourages Canadians who dream of owning a home to plan ahead and get professional advice: “Buying a home is a big personal and financial decision, so it’s best to have a plan. A financial advisor or mortgage specialist can help you build that plan and guide you every step of the way.”
Below are some suggestions:
- Start saving early. Every dollar matters and establishing an automatic savings plan is a great way to make sure you achieve your goals
- Don’t rush into the market. Your home must be financially sustainable and you don’t want to be house poor, struggling to pay your mortgage
- Two of the biggest factors that drive home prices are location and size. Part of an effective plan is knowing the trade-off you might have to make. Make sure your mortgage is portable so that you can move your mortgage once you are ready to upgrade to a bigger home or a new location
“For many Canadians, home ownership means personal freedom. A solid financial plan that is unique to your goals will ensure financial freedom as well,” adds Mr. Gollom.
