Oct. 26, 2012 | Cody Stuart
46% of Canadians Intend to Buy PropertyIn a Housing Confidence report released by BMO, 46 per cent of Canadian homeowners intend to buy a property in the next five years.
The intentions signal a high level of confidence in the Canadian housing market. An increase in process how-ever, could change the minds of potential buyers. "The fact that 46 per cent of Canadian homeowners intend to buy a property in the next five years implies that Canadians are feeling confident in the current real estate market environment," said Martin Nel, vice president of Lending and Investments. "However, that certainty is tempered, given the adverse effect moderate increases in home prices and mortgage cost would have on the average homeowner."
The report also found 72 per cent of households polled would feel a significant strain if they were to experience a modest increase in monthly mortgage payments such as one caused by an increase in interest rates.
"Rising debt and elevated house prices have increased the vulnerability of a meaningful number of households and their financial situation will worsen if interest rates increase even moderately," said Sal Guatieri, senior economist, BMO Capital Markets. "With rates likely to remain low for some time, the recent tightening in mortgage rules will help to cool credit growth and the housing market."