CMHC Survey Reveals Continuing Mortgage Challenges Amid Affordability Concerns and Rising Rates
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The 2024 Mortgage Consumer Survey by Canada Mortgage and Housing Corporation (CMHC) reveals persistent challenges in the Canadian mortgage market, notably driven by affordability issues and escalating interest rates. In January, CMHC surveyed nearly 4,000 recent mortgage consumers across the country, encompassing individuals who renewed or refinanced mortgages, or engaged in home purchases within the past 18 months.
The survey underscores the collaborative efforts between consumers and mortgage professionals in navigating financing challenges prevalent in the housing market. Notable solutions explored include co-ownership arrangements and refinancing for renovations. Despite prevailing concerns, a significant majority of mortgage consumers maintain a positive outlook, with 79 per cent regarding homeownership as a sound long-term financial investment.
The survey highlights a mortgage landscape resembling that of the previous year, with 15 per cent of Canadians acquiring mortgages in the covered period. Rising interest rates, reaching unprecedented levels during the survey period, have influenced consumer behavior, prompting 22 per cent of homebuyers to expedite their purchase decisions. Conversely, 13 per cent delayed their home purchases, particularly impacting first-time buyers and newcomers. Saving for a down payment remains a significant challenge, averaging 4.2 years, although 30 per cent of buyers received financial assistance, and 12 per cent engaged in shared homeownership arrangements to mitigate costs.
Read the full article on: REAL ESTATE MAGAZINE
