Homebuying intention is at its highest in eight years as the growth in the Canadian economy fuels consumers’ confidence.
Despite the mortgage stress tests introduced at the start of 2018, a third of Canadians polled by RBC say they are very or somewhat likely to buy a home in the next two years.
Among millennials, the homebuying intention is even higher with 50% likely to buy.
Although more than half of potential buyers say that the OSFI mortgage regulations are affecting their buying decision, it does not mean they won’t buy at all.
A quarter of respondents said they will buy with a larger down payment and 18% will seek a smaller home or one in a less expensive area. Just 19% said the mortgage rules will delay their purchase and 39% were not aware of the stress tests.
Getting financial assistance from family is the plan of 36% with the same share having a dedicated savings account of their own which will fund the down payment.
Finding the right home is the top challenge cited by the RBC Home Ownership Poll, followed by deciding how much they can afford.
Interest rates are an important factor in the homebuying decision with 61% of respondents saying they are concerned about rates and a combined two thirds citing current low rates, or the potential of rate rises, for wanting to buy a home sooner.