How Canadians feel about the housing market right now

The desire to own a home is still strong, but financial barriers are making it difficult. A quarter of Canadians (26%) plan to buy a home in the next five years, with younger Canadians, skilled tradespeople and small business owners leading the way. However, affordability challenges are causing delays — 76% of prospective buyers say rising interest rates and inflation have pushed back their plans, while 71% say it’s hard to know if now is the right time to buy. More than half (55%) of non-homeowners say they don’t know where to start with the homebuying process.

For the majority of homeowners in Canada, managing a mortgage is part of daily life — 56% of homeowners have a mortgage, with fixed-rate loans being the most common choice (76%). As 38% of mortgage holders prepare for renewal in the next 2 years, many are making financial adjustments to prepare. Determined to make budgets work, over half of renewers expecting a higher rate are tightening their belts by opting for more affordable shopping options and cutting back on discretionary spending such as travel and entertainment (57%). Many are also shopping for better mortgage rates (42%), seeking additional income sources (24%) and making lump sum payments towards their mortgages (19%). While most renewers plan to stick with a fixed-rate mortgage (64%), 19% are unsure of their best option.

Renting is a practical option for many Canadians, but affordability concerns are making stability a challenge. One third of renters expect to relocate within the next 12 months, highlighting the volatility of the rental market today. A large majority (79%) of renters say rental costs have reached a critical level in their area, and 69% feel that rising rents are making it harder to save for a home. Many renters feel stuck, delaying moves due to affordability concerns, while 65% believe renting is perceived negatively compared to homeownership.

New government policies expanded mortgage options for buyers, but there’s still work to do to get the word out. About half of Canadians (48%) know that 30-year mortgage amortizations are now available for all first-time homebuyers and buyers of newly built homes, but only 24% know the insured mortgage cap has increased from $1 million to $1.5 million.

Still, it’s a welcome change. Many Canadians believe longer mortgage terms will give buyers more flexibility, make homeownership more accessible and create more competition in the mortgage market. And they’re ready to take advantage — 28% of Canadians say they’re likely to obtain a mortgage with a term of over 25 years, while 16% are considering a mortgage with a higher cap.

While government policies have aimed to help homebuyers, renters feel left behind. An overwhelming 90% of tenants believe the government should introduce rental incentives similar to those available for first-time homebuyers. Only 27% of renters feel that the government effectively supports them or provides sufficient affordable housing options.

Housing remains a top priority for Canadians, whether they own, rent or plan to buy. Homeownership is still a major goal, but many are rethinking their approach — adjusting timelines, reassessing budgets and exploring new mortgage options to make it work.

No matter where you are in your housing journey, an advisor can help you make sense of your options, exploring how your housing choices align with your unique goals. With the right guidance, individuals can better balance homeownership aspirations, rental realities and long-term financial security.