More than half of prospective buyers admit it will take at least two years to be financially ready, TD survey finds
A survey by TD Bank Group reveals that Canadians' desire to own a home remains strong despite an ever-evolving homebuying market, with 74 percent of prospective homeowners still feeling hopeful about purchasing a home within the next five years.
However, more than half of these buyers, 58 percent, admit it will likely take them at least two years to be in a financial position to do so.
To achieve homeownership, many prospective buyers are taking significant steps. Fifty-six percent are reducing non-essential expenses, while 52 percent plan to invest more of their money.
Additionally, 32 percent intend to work with a financial professional to develop a plan, and 23 percent are taking out loans.
Interestingly, 8 percent of prospective homebuyers are considering purchasing property with someone who is not their partner, such as a friend or family member, reflecting the rising trend of the “modern homeowner.”
Financial constraints, a lack of familiarity with the mortgage and homebuying process, and market uncertainty remain barriers to homeownership.
The survey found that 85 percent of prospective homeowners are not very comfortable with the homebuying or mortgage process, and nearly all, 95 percent, have concerns related to the process.
Over half of the prospective buyers, 53 percent, would feel more confident in keeping up with the Canadian housing market if they had access to quick advice from a professional.
Natasha Struminikovski, associate vice president, Homeowners Journey at TD, stated that navigating the mortgage and homebuying process can be overwhelming for many Canadians.
The survey shows that 46 percent have felt stress, 41 percent have felt anxious, and 34 percent have experienced frustration navigating it. For Canadians looking to achieve the dream of homeownership, it is important to remain patient, stay informed, seek out professional advice, and have a plan.
These steps can help ease the stress or uncertainty Canadians may feel and guide prospective homebuyers along their journey to homeownership.
To support Canadians seeking fast and valuable advice, TD Mortgage Direct offers personalized mortgage insight quickly.
The Canadian homebuying process has arguably become more challenging over time due to rising home prices and a housing supply shortage. The survey found that 82 percent of current homeowners purchased their home over six years ago.
Among these homeowners, 82 percent found the homebuying process easy, with 64 percent attributing this ease to their ability to secure the house they wanted within their budget.
The survey results indicate that most Canadians who went through the mortgage and homebuying process at least six years ago found it relatively easy, with many able to afford their desired home.
Today, the reality is quite different for many Canadians, with 76 percent of prospective homeowners concerned about current house prices and 61 percent citing concerns around the current interest rate environment.
Struminikovski added that with all the challenges prospective homebuyers face in 2024, access to trusted advice is needed now more than ever.
The survey also found that 69 percent of prospective homeowners do not currently have a personalized financial plan to achieve homeownership, though 59 percent plan to develop one soon.
Additionally, 72 percent 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 interest rate uncertainty, prospective buyers have concerns about knowing when the best time to buy is, which 44 percent reported, and which mortgage options benefit them the most, with 36 percent citing this concern.
Only 5 percent of respondents stated they had no concerns about the mortgage or homeownership process at all.
As achieving homeownership in Canada evolves and presents new challenges, it is increasingly important that Canadians receive timely advice.
The survey found that over four in five Canadians, 83 percent, are not very confident in their ability to follow current market trends or do not follow the market at all.
However, a more promising outlook was seen among those who had established a personalized financial plan or met with a financial advisor, with 63 percent feeling more confident about achieving homeownership after taking at least one of these actions.
