Plenty of would-be buyers are waiting for borrowing costs to tick lower before making a move, survey shows
A growing sense of economic uncertainty is making homeownership feel increasingly out of reach for many Canadians, according to the latest BMO Real Financial Progress Index.
The survey, released Monday, found that 67% of prospective homebuyers are delaying their purchase until interest rates decline – a slight dip from 2024. More striking, however, is the sharp rise in recession concerns, which climbed from 60% in March to 74% in April.
“Canada’s housing market remained under pressure heading into the spring,” said Robert Kavcic, senior economist at BMO Capital Markets. “There is some clear underlying weakness as inventory builds and investors remain absent.”
Half of Canadians now believe homeownership is less attainable than it was a year ago. Confidence is waning, particularly among younger Canadians – 66% of Millennials said they feel they have missed their opportunity to buy a home.
Among those still hoping to enter the market, only 14% plan to do so this year, while 24% anticipate waiting until 2026 or beyond. Cost is a central concern: 38% are holding out for interest rates to fall to 3% or lower, while 44% remain uncertain about what level they would find affordable.
The report also highlights growing reliance on intergenerational support. Forty-three percent (43%) of homeowners said they would not have been able to purchase their home without financial help from family. Meanwhile, over a quarter of Canadians expect assistance from parents or grandparents, either for down payments, rent, or renovations.
Looking into new pathways
As traditional paths to ownership become less viable, Canadians are considering alternative approaches. Forty-five percent (45%) said they would consider co-purchasing a home with friends or family, and 52% are open to relocating to a different province or country to afford a home. In parallel, a majority – especially among older generations – expressed satisfaction with renting, viewing it as a more flexible option.
Despite mounting pressures, 70% of Canadians still feel confident in their financial situation. However, concerns about unexpected expenses (82%) and housing costs (72%) continue to weigh heavily.
“While homeownership continues to represent financial progress for many, we are finding Canadians are beginning to explore new and different pathways to meet their goals as economic uncertainty grows and priorities shift,” said Gayle Ramsay, head of everyday banking and customer growth at BMO.
The survey also found that 58% of Canadians intend to use tools like the First Home Savings Account (FHSA) or the Home Buyers’ Plan from their RRSPs to support their home purchase.
The findings are based on two Ipsos surveys conducted in March and April among a combined sample of more than 4,500 adults across Canada.
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