Canadians willing to provide assistance
would provide an average of just over $60,000, with fewer than half expecting to be
paid back
TORONTO, Dec. 3, 2020 /CNW/ - COVID-19 may be keeping
families distanced, but many are close financially, with a large
proportion of Canadians stating they are willing to help out their
adult children or relatives fulfill their dreams of homeownership.
This is despite current financial realities brought on by the
pandemic, according to the RBC Home Buying Sentiment Poll.
The poll, which provides updates on current perceptions and
sentiments related to the Canadian housing market, found that 47%
of Canadians surveyed are worried their financial position may
deteriorate over the next year. Even though over three-quarters of
respondents are concerned about the financial impacts of COVID-19
(76%) and are trying to limit their spending (76%), roughly
one-third are willing to help their child or an immediate family
member pay for a new home (31%). Almost one-half are also willing
to help their child or family member with rent if asked (46%).
In fact, a quarter of Canadians polled stated they were having
to provide more financial support to their family as a result of
the pandemic (25%). When called upon, Canadians that were willing
to provide financial assistance were willing to give their child or
an immediate family member an average of $60,513 to support their home purchase, with only
nearly half expecting to be paid back (49%).
"As more of us continue to work and spend time at home, many
Canadians want to continue on their path to homeownership," said
Amit Sahasrabudhe, Vice-President,
Home Equity Finance, Products and Acquisitions, RBC. "Over the last
few years, and throughout the pandemic, it has become harder to
enter the market in many cities nationwide, especially when trying
to do it alone. Even during these uncertain times, what we are
seeing is that families are continuing to rally around each other
and financially support their loved ones as they work towards
buying a home."
Overall, when trying to purchase a home, only 24% of respondents
said they would do so by themselves. Instead, the majority stated
it was almost impossible to buy a home on their own (58%) or afford
rent (60%) in their area, with 60% calling house prices
unaffordable in their region.
The research also found that two-thirds of Canadians polled
expressed concerns about how the next generation, and their
children, would be able to afford a home (66%), with over half
thinking that affordability will only worsen in the near future
(53%). Despite this, the vast majority of respondents still believe
that homeownership is a good investment (81%), with only 29%
agreeing it makes more sense to rent than buy right now.
"Canadians have a lot more to consider when buying a home than
they did a year ago, but they don't have to do it alone," concluded
Sahasrabudhe. "Whether you are just starting on your home buying
journey or are trying to navigate the current environment, there
are digital resources, tools and expert support to help you find a
plan that works for you."
According to Sahasrabudhe, there are a number
of things that Canadians can do to help themselves get started on
their path to homeownership:
- While the way we connect may have changed since the pandemic
started, the importance of getting expert advice hasn't. Buying a
home is one of the biggest purchases you will ever make and there
is no substitute for doing your research and having the right tools
and conversations around how purchasing a home fits within your
overall financial plan. RBC Mortgage Specialists are available by
phone to help you through the process. Digital tools like RBC
Homebuyer Advantage can also act as a one-stop resource with
step-by-step guides, tools, calculators and special offers to help
you whether you are just starting out or ready to make a move.
- Buying a home at any time requires balancing your personal
finances with external factors. Personal factors like your income,
down payment savings, and amount of personal debt can all influence
your ability to purchase the home you want. External factors like
current real estate prices and interest rates will also affect your
home-buying choices. Whether you are buying a home for yourself or
helping out a family member, the first thing to do is learn how
much you can afford. The RBC True House Affordability tool can give
you a personalized estimate on how much you may be able to afford,
while RBC's Home Value Estimator can help you determine the
estimated value of your current home to help you build your
home-buying budget.
National and Regional Data Tables
Question
|
Total
|
British
Columbia
|
Alberta
|
Prairies
|
Ontario
|
Quebec
|
Atlantic
Canada
|
I believe that home
price affordability will worsen in the near future.
(Agree)
|
53%
|
49%
|
39%
|
46%
|
58%
|
56%
|
45%
|
I am worried that my
financial position may deteriorate over the next year.
(Agree)
|
47%
|
44%
|
60%
|
51%
|
48%
|
41%
|
47%
|
I am concerned about
the financial impacts of COVID-19. (Agree)
|
76%
|
69%
|
79%
|
68%
|
77%
|
80%
|
72%
|
I am currently trying
to limit my spending. (Agree)
|
76%
|
74%
|
78%
|
79%
|
75%
|
75%
|
77%
|
If asked, I would
currently be willing to help an immediate family member/my
child by helping them pay for a new home. (Agree)
|
31%
|
37%
|
28%
|
32%
|
33%
|
27%
|
20%
|
If asked, I would
currently be willing to help an immediate family member/my
child by helping them pay their rent. (Agree)
|
46%
|
52%
|
50%
|
43%
|
45%
|
47%
|
40%
|
If asked, I would
currently be willing to help an immediate family member/my
child by helping them pay for a new home or their rent. (Agree –
Combined)
|
51%
|
57%
|
53%
|
52%
|
51%
|
50%
|
41%
|
I am having to
provide more financial support to my family because of the
pandemic.
(Agree)
|
25%
|
30%
|
24%
|
26%
|
28%
|
18%
|
15%
|
If asked, how much
money would you be willing to give an immediate family
member or your child when looking to buy a home? (Average - Those
that would)
|
$60,513
|
$55,321
|
$59,958
|
$35,516
|
$71,663
|
$54,351
|
$33,350
|
If I were to provide
an immediate family member/my child with financial
assistance when trying to buy a home or paying their rent, I would
expect
them to pay me back. (Agree)
|
49%
|
41%
|
53%
|
55%
|
48%
|
51%
|
53%
|
When purchasing a new
home, who do you think you'd buy it with? (By myself)
|
24%
|
29%
|
21%
|
23%
|
25%
|
23%
|
22%
|
I believe that it's
almost impossible to buy a home on your own in my area.
(Agree)
|
58%
|
64%
|
44%
|
34%
|
66%
|
61%
|
41%
|
I believe that it's
very hard to afford rent in my area. (Agree)
|
60%
|
77%
|
55%
|
51%
|
64%
|
45%
|
64%
|
House prices in my
area are unaffordable. (Agree)
|
60%
|
77%
|
44%
|
42%
|
68%
|
54%
|
45%
|
I worry about how the
next generation, and my children, will be able to afford
a home. (Agree)
|
66%
|
65%
|
70%
|
61%
|
71%
|
59%
|
64%
|
I believe that home
ownership is a good investment. (Agree)
|
81%
|
81%
|
79%
|
77%
|
82%
|
81%
|
80%
|
I think it makes more
sense to rent than to buy right now. (Agree)
|
29%
|
21%
|
23%
|
30%
|
34%
|
31%
|
24%
|
About the RBC Home Buying Sentiment Poll
The RBC Home
Buying Sentiment Poll was completed between November 6-11, 2020, polling 1,070 respondents
using Leger's online panel. The margin of error for each of these
samples was ±3.0%, 19 times out of 20.
About RBC
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SOURCE RBC Royal Bank