Despite rising home prices, millennials are still interested in home ownership. Reports from two major banks—CIBC and ScotiaBank—have shed light on what millennials think about buying a home and how they use the Internet to help them become informed buyers.
The findings of the reports show that nearly two-thirds of millennials plan to own a home in the next five years, but don’t have the money for a down payment yet. Ninety-six per cent of Canadians rely on the Internet for information.
Here are some stats: Two thirds (64 per cent) of Canadians aged 18-24 plan to buy a home. Sixty-three per cent want to purchase in the next five years; however, nearly half (44 per cent) say they haven’t started saving for a down payment yet, which is seen as the biggest obstacle. Getting priced out of the market is also seen as having an impact on their ability to buy.
Their plight is a concern for a majority (56 per cent) of Canadians who are sympathetic and believe that millennials should get help to enter the housing market. And 77 per cent say that buying a home today is more difficult for young people than it was for previous generations.
Here are the key findings from the CIBC poll:
- 64 per cent of Canadians aged 18–34 say they want to purchase a home
- Sixty-three per cent plan to do so within the next five years
- 44 per cent don’t have the down payment and haven't yet started saving for it
- 54 per cent of millennials say getting the down payment is biggest obstacle.
Other challenges include: Job security and earning enough to afford mortgage payments (53 per cent) and rising real estate prices (46 per cent).
- 56 per cent of Canadians say something should be done to help young Canadians get into the housing market; while
- 77 per cent of Canadians say buying a home today is more difficult for young Canadians than it was for previous generations.
Although it may not be easy to get a mortgage, it's doable. The ScotiaBank poll found that 98 per cent of Canadians rely on the Internet for information, yet 70 per cent still look to advisors for their mortgage advice. So working with a mortgage broker, who can help map out a strategy, may be the key to making home ownership dreams come true, as is putting together a team of experts and advisors, which may include a Realtor and a lawyer.
So get informed and develop a strategy with the help of a team of experts who can help you move toward your financial and home ownership goals, both short term and long term.