About 8 in 10 (82%) millennials in Canada who don’t own a home expect to one in the next five years, despite facing “significant barriers,” a global survey commissioned by HSBC said.
The figure is just about the global average (83%), according to the poll of 9,000 people across nine countries – including 1,000 in Canada. It’s also slightly above the 70% of Canadians across all generations surveyed.
Over a third (34%) of millennials in Canada own their home. Of that group, the survey found that 37% of them used the “Bank of Mom and Dad” as a source of funding. Some 21% of millennial home owners moved back in with their parents to save for a deposit.
“Despite a strong desire to take the homeownership journey, the findings also suggest that Canadian millennials face some significant barriers,” said Larry Tomei, HSBC Bank Canada executive vice president and head of retail banking and wealth management. More than two thirds of Canadian millennials (70%) said they haven’t saved enough for a deposit nor do they have a firm budget in mind.
About 42% of millennials in Canada who bought a home in the last two years ended up overspending their budget, versus the global average of 56%.
Millennials said they would consider making sacrifices to afford their own home. More than half (59%) of Canadian millennials intending to buy would consider spending less on leisure and going out, compared to the 55% global average. Some 37% would be prepared to buy a smaller than ideal place (global average: 21%).
Furthermore, almost a third (30%) – the highest proportion of all markets surveyed – would even be prepared to delay having children.
“The reality is, it`s a challenge – and so I can’t stress enough the importance of having a good plan that includes getting the right financial services advice and support before and after you buy,” said Tomei.
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