2 weeks Ago By PRNewswire
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 Millennials 1 (55%) and Gen Z 2 (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 X 3 homeowners and 10% of Boomer 4 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 eHOME 5 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. 1 Millennials are typically defined as those born between 1981 and 1996.
2 Generation Z, or Gen Z, includes individuals born from 1997 to 2012. 3 Generation X includes individuals born between 1965 and 1980. 4 Baby Boomers are those born from 1946 to 1964.
5 All 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.
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. 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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TMScene+ and the Icon Design are trademarks of Scene Plus IP Corporation, used under license. 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 BNS and New York Stock Exchange BNS .
For more information, please visit http://www.scotiabank.com and follow us on X @Scotiabank.
SOURCE Scotiabank View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2024/29/c7803.
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