For decades, buying a home has been viewed as a major milestone for Canadians. But these days, getting the keys is taking a little longer than it used to.
According to RBC’s latest Home Ownership Poll, Canadians don’t expect to buy their first home until the age of 41, on average. That’s over a decade later than today’s homeowners, who bought their first properties at the age of 29.
In other words, the traditional idea of buying your first home in your 20s or 30s is looking a little less realistic for many Canadians.
So, what’s causing this delay? Well, it’s not pricey avocado toasts and lattes, that’s for sure.
Nearly three-quarters (74 per cent) of Canadians surveyed say it’s a lot harder to buy a home today than it was for previous generations, who didn’t have to save up as much money for a down payment.
When buying a home takes longer and costs more, the idea of picking up a starter home and upgrading a few years later becomes a little less appealing.
RBC says Canadians would much rather buy one house for the long haul. Nearly three-quarters (74 per cent) of those planning to buy their first home within the next two years say they’d rather purchase a place they can essentially grow old in, rather than opting for a starter home at first and then upgrading to something bigger down the road.
Among current homeowners, 51 per cent say moving up to a bigger or better home has been harder than expected, while 46 per cent would love a larger home but say it just isn’t financially realistic right now.
And for some Canadians, getting into the housing market could also mean teaming up with family members in order to secure the keys.
RBC’s poll found that 53 per cent of potential buyers — many of them in B.C., actually — say they’d consider a multigenerational home shared with parents, children, or other members.
Pooling resources with three or more people can help Canadians get into the market a lot sooner. It’s a tempting idea, even for those who already bought their first home; 35 per cent of current homeowners say they’d be willing to sell their existing home and buy a new one with their children just to help them get into the market.
When Canadians land their dream home, that doesn’t necessarily mean their financial worries disappear. Sometimes, they’re just getting started.
According to the poll, 51 per cent of homeowners renewing their mortgage within the next two years say the experience feels almost as stressful as their first home purchase, with a staggering 82 per cent concerned about interest rates rising over the coming year.
Canadians may be over the hill once they finally get on that property ladder, but that doesn’t mean they’re in over their heads. As it turns out, buying a home now is less about getting there by a certain age and more about making sure all the numbers add up.