Posthaste: Canadians willing to sacrifice financial security for homeownership
High mortgage rates and rising inflation haven’t discouraged Canadians from their homeownership dreams, according to a new report by real estate marketplace Zolo.
The study, which interviewed 800 homeowners who bought homes in the past four years, found that Canadians are willing to sacrifice their financial security for a place to call their own. In fact, 93 per cent said competitive property markets and rising interest rates actually influenced their decisions to buy, and another 43 per cent said they wanted to purchase a property before prices increased further.
That doesn’t mean their finances aren’t affected by current economic conditions: 92 per cent indicated that inflation at least somewhat hurts their ability to afford their home. For 30 per cent of respondents, finances are so tight that they have little room for extras, while 10 per cent are unable to meet basic needs.
What’s interesting is that despite this, 45 per cent said they would still be content with their properties if there was another interest rate increase before the end of 2023.
But economic challenges aren’t the only things eating into homeowners’ budgets.
A separate report by home improvement company HomeStars, which interviewed 1,105 homeowners who completed a renovation or repair in the past year, found that a third did weather-related emergency repairs, spending an average of $12,300 in the past 12 months. That number peaks at 41 per cent in Atlantic Canada, where excessive rain caused catastrophic flooding on the East Coast in July.
A majority (79 per cent) of Canadians said they had cash on hand to pay for renovations. Their outlook continues to remain optimistic for the year ahead.
Nearly three-quarters of homeowners are planning to do at
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