first interest rate from Bank of Canada More than four years of mortgage rates are still not enough to help most buyers who feel priced out of their homes by high borrowing costs, new polls show.
this Ipsos After the Bank of Canada cut interest rates by 25 basis points on June 5, a poll conducted exclusively for Global News showed that people were more optimistic about the Housing affordability continue living.
The central bank's policy rate is a key factor influencing housing costs, affecting the size of mortgages Canadians can get and the size of their monthly payments.
More than six in ten respondents (63%) said they will continue to wait and see the housing market because interest rates are too high. More than 1,000 Canadians aged 18 and older were interviewed online between June 7 and 10.
Among those who don’t own a home, about 6% said interest rates would have to fall by less than a percentage point before they would consider buying a home. A quarter said they would need to see interest rates fall by 1 to 3.99 percentage points to enter the market, while 10% said they would need interest rates to fall significantly to own a home.
About 45% of people believe they will not be able to afford a house no matter how much interest rates fall.
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A majority of Canadians (78 per cent) say owning a home in Canada is now only for the wealthy, down slightly from 80 per cent who said the same in a similar poll in April.
Six in ten respondents (62%) said they had given up on owning a home, also down from 72% in April.
Even though the Bank of Canada launched an easing cycle last week and signaled further rate cuts are likely this year, interest rates remain high.
Among current homeowners, a third said they were concerned about not being able to keep their home due to high mortgage rates.
Two-thirds (67 per cent) of Canadian mortgage borrowers said they would choose a fixed rate if they were to renew or apply for a new mortgage this year. About 30 per cent would choose a variable rate.
The Bank of Canada will announce its next interest rate decision on July 24.
These are partial results from an Ipsos poll conducted on behalf of Global News from June 7 to 10, 2024. For this survey, 1,001 Canadians aged 18 years and over were interviewed online. Quotas and weightings were applied to ensure that the composition of the sample reflected the composition of the Canadian population according to census parameters. The precision of Ipsos online polls is measured using credible intervals. In this case, if all Canadians aged 18 years and over were surveyed, the poll would be accurate to within ± 3.8 percentage points, 19 times out of 20. Between subsets of the population, credible intervals are wider. All sample surveys and polls may be subject to other sources of error, including but not limited to coverage error and measurement error.
© 2024 Global News, a division of Corus Entertainment Inc.
