Rate cut not enough to get most Canadians off housing market sidelines: poll
The first interest rate cut from the Bank of Canada in more than four years will not be enough to help most prospective homebuyers feeling sidelined by high borrowing costs, new polling suggests.
The Ipsos poll conducted exclusively for Global News after the Bank of Canada’s 25-basis-point rate cut on June 5 shows pessimism about housing affordability persists.
The central bank’s policy rate is a key input into housing costs, affecting both the size of mortgage Canadians can qualify for and the amount they pay on a monthly basis.
Just over six in 10 respondents (63 per cent) to the polls said they’ll remain on the sidelines of the housing market due to high interest rates. More than 1,000 Canadians aged 18 and older were interviewed online between June 7-10.
Among those who don’t own a home, some six per cent said interest rates would have to drop by less than one percentage point for them to consider buying a property. One in four said they’d need to see cuts of between one and 3.99 percentage points to get into the market, while 10 per cent said they needed steeper drops to make home ownership a possibility.
Some 45 per cent maintain that they won’t be able to afford a home no matter how much interest rates decline.
Most Canadians (78 per cent) indicated that owning a home in Canada is now only for the rich, a slight decrease from the 80 per cent who said as much in similar polling from April.
Six in 10 respondents (62 per cent) said they’d given up on ever owning a home — that, too, is down from 72 per cent in April.
Though the Bank of Canada kicked off its easing cycle last week and suggested there could be more interest rate cuts in the cards this year, rates remain at elevated levels.
Among those who currently own
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