Over Half of Younger Canadians Plan to Buy Next Year

RBC poll finds over half of younger Canadians plan to buy next year

TORONTO, April 7 /CNW/ - Over half of young Canadians (55 per cent) believe that it makes sense to delay a home purchase until next year, 10 points higher than the national average, and almost half (46 per cent) of younger homeowners admit that their mortgage is using up too much of their income, according to the 18^th Annual RBC Homeownership Study.

"In a more balanced housing market, it makes sense that younger and first time homebuyers are waiting to assess all of their options and do their research before buying a home," said Bernice Dunsby, director of Client Acquisition,Home Equity, RBC. "It's also important to get expert advice on what you can afford and leave yourself with a little extra wiggle room in your budget so you don't become house poor, as home maintenance and lifestyle costs can add up."

The poll found that younger Canadians are more likely to purchase a home than other age groups, as 43 per cent (aged 18-34) are looking to buy in the next two years, compared to the national average of 29 per cent. Older Canadians are much less likely to buy in the next two years, including those aged 35-54 (29 per cent) and over-55 (17 per cent).

When looking for advice on purchasing a home, younger homebuyers (aged 18-34) are more likely to use real estate websites (55 per cent) or family (48 per cent) and friends (35 per cent). The majority of older Canadians, aged 45-54 and over-55, are more likely to rely on a real estate agent as their choice for advice, at 71 per cent and 74 per cent respectively. "Being prepared and working with a mortgage specialist will help you buy with confidence and give you expert advice on current financing options," added Dunsby. "Having a mortgage pre-approval is a critical component of buying a home, particularly for younger homebuyers. It presents you as a serious purchaser to both realtors and sellers."

According to the poll, younger Canadians (aged 18-34) are most concerned about having a good down payment (23 per cent) and rising real estate prices (23 per cent) when looking to buy a home. Canadians aged 35-54 are most concerned with rising prices, as 24 per cent are worried about mortgage rates and 25 per cent about home prices increasing. Canadians over the age of 55 list increasing home prices (36 per cent) as their biggest worry when deciding to purchase a home.

While 43 per cent of younger Canadians (aged 18-34) are paying off their mortgage faster than they expected, two-thirds (66 per cent) say it is larger than they would like it to be.

What types of homes are Canadians looking to buy? (according to the 18th Annual RBC Homeownership Poll):

Younger Canadians (ages 18-34)

• Detached house 59 per cent
• Condo/loft 15 per cent
• Semi detached house 10 per cent
• Townhouse 10 per cent

Mid-range Canadians (ages 35-54)

• Detached house 71 per cent
• Condo/loft 10 per cent
• Semi detached house eight per cent
• Townhouse seven per cent

Older Canadians (55 and older)

• Detached house 68 per cent
• Condo/loft 15 per cent
• Semi detached house five per cent
• Townhouse five per cent