Over half of Millennials and Gen Z (58%) plan
to buy their first home within five years, with a strong
demand for clear and accessible guidance to help achieve their
homeownership goals.
TORONTO, Oct. 29,
2024 /CNW/ - The dream of homeownership is alive
amongst younger Canadians according to the latest Scotiabank
Housing Poll. Despite more than half of Millennials1
(55%) and Gen Z2 (58%) feeling that buying
a home is unattainable, a majority (58%) of Canadians aged
18 to 43 are still determined to purchase a home within the next
five years.
With the economic environment continuing to evolve, including a
decrease in interest rates for the first time in over four years,
over half of Millennials and Gen Z (56%) still report the
current economy is negatively impacting their finances causing many
to delay their home-buying plans. Concerns about the impact of the
economy on home-buying plans have grown since 2021 (+12%),
particularly among older Canadians (+16%), with affordability
concerns among younger Canadians (18-34) remaining steady over the
years. Despite this concern and the fact that homeownership has
declined amongst younger Canadians (18-34) in recent years, this
cohort's long-term plans to buy a home remain largely
unaffected.
"Canadians continue to face barriers in today's challenging
housing market. While homeownership may feel out of reach for many
young Canadians, their determination to achieve it remains
unwavering," says Tracy Gomes,
Senior Vice President of Real Estate Secured Lending at Scotiabank.
"With the overwhelming amount of information available, especially
for first-time and recent homebuyers, we at Scotiabank are here to
support our clients with our tailored financial advice and tools to
help them achieve their dream of homeownership."
When it comes to those who have already purchased homes, many
younger Canadians are fast approaching mortgage renewal. Nearly
three-quarters (72%) of Gen Z homeowners and half
(48%) of Millennial homeowners will be renewing their
mortgage for the first time, compared to only 14% of Gen
X3 homeowners and 10% of Boomer4 homeowners.
In spite of declining interest rates, this remains a major concern
for 68% of Canadians across generations, especially those
renewing their mortgages, with 44% prioritizing a
competitive rate when choosing a mortgage.
Buying a home is one of the biggest financial decisions
Canadians will make in their lifetime, and Scotiabank can help
simplify the process with tailored advice and digital-first,
accessible resources:
- Find out what you need to get started with Scotiabank's
digital tools like the Scotiabank Mortgage
Calculator and What Can I Afford Calculator to
ensure your mortgage fits your budget and to help you understand
your mortgage options.
- Cut through mortgage confusion and schedule an appointment with
a Scotia Home Financing Advisor to simplify the process and
support your homeownership goals with tailored advice and
solutions.
- Get started in minutes with the Scotiabank
eHOME5 hub to get preapproved, search for a
home, switch to Scotiabank or get mortgage approval all in one
place, all online.
- For Canadians getting ready to embark on
their homeownership journey, Scotiabank offers the First
Home Savings Account (FHSA), a tax-free savings account you can
contribute up to $8,000 each year
with a maximum lifetime contribution of $40,000, providing a great savings vehicle to
support your homebuying goals. Clients can also combine with the
Home Buyers' Plan, offering the ability to withdraw up to
$60,000 from their RRSPs towards a
home purchase.6
- Get personalized financial advice and access to a variety of
digital tools and resources through Scotia Advice+ Centre,
including:
- Scotia Smart Money by Advice+7: A
digital money management feature enabling clients to track their
spending, create a budget, and get personalized insights to help
manage their finances.
- Scotia Smart Investor via Advice+: Our digital
platform allowing clients to set, track, and manage financial goals
as their life evolves. With the ability to set as many goals as you
like, clients have a clear view to help reach their goals
faster.
Additional 2024 Scotiabank Housing Poll Findings:
- 37% of Gen Z and 31% of Millennials have
moved up their home-buying plans given an improved financial
standing over the past year, much higher than the 15% of Gen X and
10% of Boomers.
- Gen Z places the highest importance on the ability to
complete the entire mortgage application process
online (35% vs. 5% for Boomers).
- Over a quarter of Millennials and Gen Z (27%)
report lacking confidence in understanding the steps needed to buy
a home, higher than the 15% of Boomers.
- 63% of Gen Z and 54% of Millennials are
looking for clearer and more accessible information from their
financial institutions on the homebuying and mortgage process.
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1
Millennials are typically defined as those born between 1981 and
1996.
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2 Generation
Z, or Gen Z, includes individuals born from 1997 to
2012.
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3 Generation
X includes individuals born between 1965 and 1980.
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4 Baby
Boomers are those born from 1946 to 1964.
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5All
mortgage applications are subject to meeting Scotiabank's standard
credit criteria, residential mortgage standards and maximum
permitted loan amounts. Switch applications
in Quebec cannot be completed through
eHOME. Please visit here to find out about our other
switch offers.
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6 HBP
will continue to be available, under which an individual may
withdraw up to $60,000 tax-free from an RRSP to purchase or build a
home, on the condition that amounts withdrawn be repaid to the RRSP
over a period not exceeding 15 years. First-time home buyers who
withdraw money from their RRSPs between January 1, 2022, and
December 31, 2025, will have five years instead of two to begin
repayments over a period not exceeding 15 years.
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7 To access
Scotia Smart Money by Advice+, you must have an active personal
banking retail product, have transacted at least once on your
account within the preceding 6 months and have logged into the
Scotia Mobile Banking App.
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®Registered trademark
of The Bank of Nova Scotia.
*Visa Int./Licensed User.
™Scene+ and the Icon Design are trademarks of Scene Plus IP
Corporation, used under license.
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About the Survey
The Scotiabank Housing Poll was conducted on behalf of
Scotiabank by Maru Public Opinion and its sample and data
collection experts at Maru/Blue from September 5 to 6, 2024, surveying 3,017 Canadian
adults, including 1,858 homeowners and 1,235 renters. Results were
weighted by education, age, gender, and region (and in Quebec, language) to reflect the Canadian
population according to Census data. The margin of error for the
total sample is ±/- 1.8%, 19 times out of 20.
About Scotiabank
Scotiabank's vision is to be our clients' most trusted financial
partner, to deliver sustainable, profitable growth and maximize
total shareholder return. Guided by our purpose: "for every
future," we help our clients, their families and their communities
achieve success through a broad range of advice, products and
services, including personal and commercial banking, wealth
management and private banking, corporate and investment banking,
and capital markets. With assets of approximately $1.4 trillion (as at July
31, 2024), Scotiabank trades on the Toronto Stock Exchange
(TSX: BNS) and New York Stock Exchange (NYSE: BNS). For more
information, please visit http://www.scotiabank.com and follow us
on X @Scotiabank.
SOURCE Scotiabank