Prospective homebuyers in Alberta are the most confident in all of Canada, according to a new poll from RBC Royal Bank.
Resurging confidence in the economy and employment is boosting homebuying intentions among Canadians to the highest levels since 2010, despite the federal government’s new uninsured mortgage “stress test.” In fact, according to the annual RBC Home Ownership Poll, one-third of Canadians (32 per cent) are very or somewhat likely to buy a home in the next two years, up seven percentage points from last year. Millennials (ages 18 to 34) express the strongest of those homebuying intentions (50 per cent).
As intention to buy continues to climb in Canada, slightly more than one third (35 per cent) of Canadians indicated they would be receiving financial assistance from family for a down payment, while almost an equal number (36 per cent) plan to do it on their own with a dedicated savings account.
“Canadians continue to feel optimistic about getting into the housing market despite changes in government regulations,” says Nicole Wells, vice-president, Home Equity Financing, RBC. “They’re taking a more informed journey to homeownership by starting with affordability. With the right tools and a detailed roadmap that navigates the journey, Canadians are better prepared to make one of the biggest decisions – and it’s based on facts, not emotions.”
Tips for homebuying success
While no one can tell what the future may bring, it’s important to test drive your near-term homeownership plans. If you plan to have children in the future, buy a new car or own a business, make sure you have a few scenarios aligned with your dreams.
Perform your own stress test
While optimism about the job market and economy has increased, it can also lead buyers to feel overly optimistic about what they can afford. Perform your own stress test when determining affordability by testing what will happen if interest rates go up, or your income goes down.
Use online tools
With the variety of tools available, homebuyers today can make more informed decisions than in the past. From online mortgage pre-approvals to neighbourhood analyses, important information is at your fingertips before your home hunt even begins.
Future-proof your financial life
Your home is more than just a place to live; it is an investment that can impact your future plans and finances. Whether you’re buying your first home or helping your children buy their first home, meet with an expert to get a better idea of what impact that will have on your long-term savings.