Differing perspectives on the Canadian housing market from prospective and current homeowners underscore the challenges that Canadians face in 2024

TORONTO, May 30, 2024 /CNW/ - A new survey by TD Bank Group has found that despite an ever-evolving homebuying market, Canadians' desire to own a home remains steadfast, with 74% per cent of prospective homeowners surveyed still feeling hopeful that they will be able to purchase a home in the next five years. However, given the reality of the current environment, more than half (58%) of these prospective buyers admit it will likely take them at least two years to be in a financial position to do so.

To achieve homeownership, 56 per cent of prospective buyers surveyed said they are reducing their non-essential expenses, 52 per cent are planning to invest more of their money, 32 per cent are planning to work with a financial professional to develop a plan for homeownership, and 23 per cent are taking out loans. Interestingly, 8 per cent of prospective homebuyers appear to be tapping into the rising trend of the "modern homeowner" by looking to purchase property with someone who is not their partner, such as a friend or family member.

As well as financial constraints, lack of familiarity with the mortgage and home buying process, and uncertainty around the market itself remain barriers to home ownership, with 85 per cent of prospective homeowners saying they are not very comfortable with the home buying or mortgage process, and nearly all (95%) saying they have concerns related to the mortgage or home buying ownership process. Over half (53%) of prospective home buyers would be "more confident" in keeping up with the Canadian housing market if they had access to quick advice from a professional.

"Navigating the mortgage and home buying process can be overwhelming for many Canadians. Our survey shows that 46 per cent have felt stress, 41 per cent have felt anxious, and 34 per cent have experienced frustration navigating it," said Natasha Struminikovski, Associate Vice President, Homeowners Journey at TD. "For Canadians looking to achieve the dream of home ownership, it's important to remain patient, stay informed, seek out professional advice, and have a plan. Having these steps in place can help to ease the stress or uncertainty Canadians may be feeling and can also act as a guide for prospective homebuyers along their journey to homeownership."

To support Canadians looking for fast and valuable advice, TD Mortgage Direct will get you matched with a Mortgage Specialist who can provide personalized mortgage insight quickly. TD Mortgage Specialists can:

  • Explain how to start the process of buying your first home and get your mortgage application started.
  • Switch your mortgage to TD from another financial institution.
  • Understand your interest rate options and help you find a rate that works for you.
The homebuying experience is evolving

The Canadian home buying process has arguably become more challenging over time due to rising home prices and a shortage of housing supply. The survey found that, of current homeowners polled, the vast majority (82%) purchased their home over six years ago.

Among the current homeowners who purchased over six years ago, 82 per cent said they found the process of buying a home "easy," with 64 per cent indicating that the ease they experienced with the home buying process was due to their ability to secure the house that they wanted within their budget.

"The survey results tell us that most Canadians who went through the mortgage and home buying process at least six years ago felt it was relatively easy, with many finding they were able to afford their desired home. Today, the reality is quite different for many Canadians, with 76 per cent of prospective homeowners saying they are concerned about the current house prices, and 61 per cent citing concerns around the current interest rate environment. With all the challenges prospective homebuyers face in 2024, access to trusted advice is needed now more than ever," added Struminikovski.

Other key findings:
  • 69 per cent of prospective homeowners do not currently have a personalized financial plan to achieve home ownership, though 59 per cent plan to develop one in the near future.
  • 72 per cent of Canadian homeowners and prospective homebuyers have not sought advice from a person or online source to learn more about achieving homeownership.
  • Besides increasing house prices and uncertainty of interest rates, prospective buyers also had other concerns such as: knowing when the best time to buy was (44%) and knowing which mortgage options benefit them the most (36%). Only 5 per cent of respondents stated said they had no concerns about the mortgage or home ownership process at all.
Guidance from a professional

As the realities of achieving home ownership in Canada evolve and present new challenges for prospective homebuyers, it is increasingly important that Canadians get the advice they need, and in a timely fashion.

The survey found that over four in five (83%) Canadians were not very confident in their ability to follow current market trends, or simply do not follow the market at all. A more promising outlook was seen in those who had established a personalized financial plan or met with a financial advisor, with 63 per cent who had taken at least one of those two actions to help achieve their goals feeling more confident about achieving home ownership.

To learn more about how you can take the next step toward homeownership, connect with TD Mortgage Direct to speak with a mortgage specialist today.

About TD Bank Group

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 17 million active online and mobile customers. TD had $1.97 trillion in assets on April 30, 2024. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.

About the survey

This Maru Public Opinion survey conducted on behalf of TD Bank was undertaken by the sample and data collection experts at Maru/Blue. 1,767 randomly selected Canadian adults who are Maru Voice Canada online panelists and are either a current homeowner (885 respondents) or prospective home buyer intending to purchase a home in the next five years (882 respondents) were surveyed from April 25th to April 30th, 2024. The results of this study have been weighted by gender and region. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 3.3%, 19 times out of 20 for homeowners and prospective home buyers. Discrepancies in or between totals when compared to the data tables are due to rounding.

SOURCE TD Bank Group

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