Home prices across Canada are on the decline, and that’s a good thing for Canadian homebuyers. Even at a slightly lower price, the average price of a home in Canada was listed as $496,763 in October. A purchase that big requires a major financial commitment, so it’s understandable that Canadians say that price is the most important factor they consider when looking to purchase a home.
According to CMHC’s 2018 Mortgage Consumer Survey, 23 per cent of Canadians say they’re currently renting because they cannot afford to buy a home.
Of course, the cost of the home is the biggest concern for potential homebuyers. More than 50 per cent of Canadians worry about overpaying for their home. Which makes a lot of sense considering 1 in 5 first-time homebuyers get into bidding wars.
But it’s not just the cost of the home that has Canadians concerned. Nearly one-third of Canadian homebuyers worry about associated costs of homeownership including rising interest rates and mortgage qualification.
Hidden costs can be quite terrifying, especially if you, like most first-time Canadian homebuyers, already feel like you’ve spent the maximum you can afford on your home. 85 per cent of first-time Canadian homebuyers and 68 per cent of repeat buyers reported feeling this way. Fortunately, 76 per cent of Canadians are confident that they’ll be able to afford future mortgage payments.
In the event of unforeseen financial circumstances, 60 per cent of first-time buyers and 69 per cent of repeat buyers say they have sufficient funds to cover their obligations.