Homeowners are focused on energy efficiency
improvements to combat rising rates, while non-homeowners are
seeking solutions to housing affordability
TORONTO, May 31, 2022
/CNW/ - A new CIBC survey finds Canadians are feeling the
pinch of inflation and rising interest rates. Among homeowners who
have a variable rate mortgage, 36 per cent say they are likely to
switch to a fixed rate in the next 12 months. Meanwhile 63 per
cent of renters or those living with family say they are concerned
about the impact rising rates will have on their ability to
purchase a home in the future.
"From the grocery store to the gas pump, Canadians are feeling
the effects of inflation," said Carissa
Lucreziano, Vice-President, CIBC Financial and Investment
Advice. "And while the impacts are affecting homeowners and
non-homeowners alike, both groups are faced with very different
challenges. Homeowners are looking to find smart ways to save on
the costs of home upkeep, while non-homeowners continue to seek
solutions should their rent climb, as well as assessing whether
they should enter the housing market."
The hot market for home
improvement continues:
Just over one-third (37 per cent) of Canadian homeowners say
they are making plans for home improvements to their property in
the next 12 months.
Home energy efficiency is a hot topic among homeowners with 70
per cent agreeing that climate change resilience and environmental
sustainability are important factors to consider when undergoing a
home renovation, and 59 per cent of those who made or plan to make
energy efficient improvements did so in an effort to save
money.
When it comes to financing energy efficient home improvements,
60 per cent of homeowners say they would consider using government
programs or rebates to support their upgrades.
Renters continue to seek solutions
to housing affordability:
For renters, the heated housing market continues to be an
obstacle to home ownership with 69 per cent saying they never
expect to own a home and 37 per cent indicating that home ownership
is simply not an achievable goal for them.
Current housing prices combined with rising interest rates are
the top barriers for non-homeowners to enter the housing market
with 44 per cent saying they are unable to save enough for a down
payment and 58 per cent indicating they won't be able to afford a
home without a partner or additional income from someone else.
"There's no doubt Canadians are faced with a challenging housing
market, but whether you're starting to save for a down payment and
have questions about affordability or are wondering if you can
afford to renovate your dream home, we have experts who can help
you achieve your home ambitions," added Ms. Lucreziano.
Other Key Findings:
- 49 per cent of non-homeowners indicated they need help
understanding the total costs associated with purchasing a new home
and obtaining a mortgage
- Nearly a third (28 per cent) of homeowners and those in the
market for a home would use their existing mortgage advisor or bank
to obtain a new mortgage
- 88 per cent of those who have had a recent conversation about a
new or existing mortgage with an advisor at a bank were satisfied
with their experience
About CIBC
CIBC is a leading North American financial institution with 11
million personal banking, business, public sector and institutional
clients. Across Personal and Small Business Banking, Commercial
Banking and Wealth Management, and Capital Markets businesses, CIBC
offers a full range of advice, solutions and services through its
leading digital banking network, and locations across Canada, in
the United States and around the
world. Ongoing news releases and more information about CIBC can be
found at
https://www.cibc.com/en/about-cibc/media-centre.html
Disclaimer:
From March 28th to
March 31st , 2022 an
online survey of 1521 randomly selected Canadian adults who are
Homeowners, Renters or Co-Inhabitants who are Maru Voice Canada panelists was executed
by Maru/Blue. For comparison purposes, a probability sample of this
size has an estimated margin of error (which measures sampling
variability) of +/- 3%, 19 times out of 20.
SOURCE CIBC