Down-payment support now essential for Canadian homebuyers: Poll
The organization's 2025 State of the Housing Market report reveals that among buyers in the last two years, 70 per cent say they couldn't have bought their home without financial help. Among all respondents, that number was 58 per cent. About 35 per cent of Canadians acknowledge they will never buy a home.
'Down payment assistance is no longer a backup plan — it's a requirement for many Canadians hoping to buy,' said Lauren van den Berg, president and CEO of Mortgage Professionals Canada, in a statement.
These findings underscore the deepening challenges of housing affordability in Canada.
Young Canadians buying their first homes, in particular, may face the greatest barriers to home ownership without financial support.
Canada's youngest households — those under 35 — are building wealth at the slowest pace of any age group, in part because they're reducing their real estate holdings, according to a Statistics Canada report on the savings and wealth of Canadians.
Young prospective buyers may be giving up on the housing market due to affordability issues, the report added.
Homebuyers who entered the market when interest rates dropped from 2020 to 2022 may have also dropped their real estate holdings because they moved into more affordable accommodations – or are putting their financial focus on repaying existing mortgage debt, the report says.
More than half of Canadians (56 per cent) agree that now is a bad time to buy, and 60 per cent believe that, due to previously lower interest rates, many Canadians bought homes when they probably shouldn't have, the MPC report says.
Canadians largely expect home prices to rise another 5 to 10 per cent, especially those living in Alberta and Quebec.
Download the Yahoo Finance app, available for Apple and Android.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
Toronto home sales heated up in July but flat market still predicted for rest of the year
Softening home prices and interest rates may have spurred some Toronto buyers to take action this summer, according to a new report from the Toronto Regional Real Estate Board (TRREB) released Wednesday. Seasonally adjusted data showed home sales in the Greater Toronto Area (GTA) climbed 13 per cent from June to 5,744 in July, the metro's strongest monthly gain since October 2024. However, from June to July, new listings ticked up by just 0.4 per cent while the benchmark price slipped slightly by 0.2 per cent to $979,000. The average number of days that properties were on the market (including those listed more than once) climbed from 36 to 41 year-over-year. Shawn Zigelstein, an Ontario broker from Royal LePage Signature Realty, said he expects a flat market for the rest of the year. 'I don't see that suddenly everything is going to start getting multiple offers, sell well over asking price and well over the values that they were at a number of years ago,' Zigelstein said, noting that during the housing market's peak, the average number of days a property was on the market was under 15. 'I think there are so many question marks, whether it's tariffs and trade, job security and people's investment accounts,' he said. 'There's so much uncertainty there.' Still, he noted it was a positive sign that sales of all product types, from condos to detached homes, were up year-over-year. Sales increased by 11 per cent, new listings were up 5.2 per cent and the benchmark price fell 5.5 per cent compared to July 2024. 'Improved affordability, brought about by lower home prices and borrowing costs, is starting to translate into increased home sales,' said TRREB president Elechia Barry-Sproule in the report. 'It's clear that a growing number of households are finding affordable options for homeownership.' Condo sales ticked up 5.8 per cent from last year with the average price down over nine per cent, TRREB reported. But a previous report from TRREB found total condo apartment sales in the GTA plunged nearly 21 per cent in the second quarter of 2025 compared to the same quarter last year. Zigelstein said he expects slow growth in condo sales moving forward, with smaller units impacted the most by low demand, and prices to fall further this year. 'What we're seeing is, across the entire board, condos are taking a lot longer to sell and and they're just not selling (for what) a lot of people want them to sell at, which encourages buyers to come in with lowball offers and … pick up some units.' Vancouver home sales tick 2% lower, but realtors say market 'turning a corner' Condo prices in the suburbs are cratering He suggested that a new trade deal with the U.S. could stimulate buyer confidence and make a massive difference in the marketplace. But until then, he's keeping his expectations low. TRREB chief information officer Jason Mercer called for the Bank of Canada to cut interest rates to encourage more home sales and stimulate the economy. The central bank last held its key rate at 2.75 per cent in July. 'Recent data suggest that the Canadian economy is treading water in the face of trade uncertainty with the United States,' Mercer said. 'A key way to mitigate the impact of trade uncertainty is to promote growth in the domestic economy. The housing sector can be a catalyst for growth, with most spin-off expenditures accruing to regional economies.' • Email: slouis@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
37 minutes ago
- Yahoo
Rocky Mountaineer to swerve West Coast in new ‘Peaks' route
Canada's Rocky Mountaineer rail operator has announced its first service that will not travel to the West Coast. For a limited time, next summer it will be focusing purely on Canada's mountain scenery, with a 'Passage to the Peaks' route. It will explore the heart of the Canadian Rockies, the company said in a statement, focusing on destinations such as Jasper, Lake Louise, Banff and Kamloops. Instead of heading to Vancouver, it will highlight the 'majestic evergreen forests, glacial lakes and towering mountains between Banff and Jasper.' Announcing the service, which is available for booking only in June and July 2026, the firm added: 'On this daylight-only luxury rail experience, Rocky Mountaineer guests will witness the breathtaking scenery unfold through expansive, panoramic windows (and glass-domed coaches with GoldLeaf service). 'Guests will also be treated to gourmet meals prepared by onboard chefs using fresh, local ingredients, while personalized service from hosts ensures every need is met onboard.' Package options range from two to 10 days. Other highlights on the tour include Rogers Pass, Pyramid Falls, Stoney Creek Bridge and Mount Robson, the tallest peak in the Canadian Rockies at almost 4,000 metres.
Yahoo
40 minutes ago
- Yahoo
IMF warns of rising risks in Canada's financial system despite bank resilience
Canada's financial system remains broadly resilient despite mounting economic uncertainty, the International Monetary Fund (IMF) said in its latest assessment — but warned that rising household debt, mortgage renewals and gaps in cyber and pension oversight could expose vulnerabilities in the years ahead. In its 2025 Financial System Stability Assessment (FSSA), the IMF said Canada's big banks, insurers and pension funds are well-capitalized and capable of withstanding major economic shocks. However, the report flagged growing risks tied to a wave of upcoming mortgage renewals, high household debt levels and a lack of coordination among financial regulators — including the Office of the Superintendent of Financial Institutions (OSFI), the Bank of Canada and provincial authorities — in responding to systemic threats such as cyberattacks, housing market shocks and climate-related disruptions. For the banking and financial sector, the report said 'total assets of financial institutions reached 756 per cent of GDP in 2024, increasing by 43.3 per cent since 2019.' Non-bank financial institutions (NBFIs) have become a dominant force in the sector, now accounting for 65 per cent of total assets. Since the last IMF review in 2019, the NBFI sector has expanded significantly, with investment fund assets growing from $2.6 trillion in 2020 to $3 trillion in 2023 — roughly 110 per cent of GDP. Canada's insurance market ranked ninth globally in terms of written premiums, according to the report. Pension funds continue to play an outsized role, holding $2.2 trillion in assets in 2023, or about 75 per cent of GDP — one of the largest pension sectors in the G7. The IMF notes that while NBFIs remained resilient, data gaps and inconsistent oversight remain concerns, particularly for large pension plans. The sector has grown in size and importance since the 2019 assessment but regulatory coordination has not kept pace. The report said the banking sector's Common Equity Tier 1 (CET1) ratio is 13 per cent. The CET1 ratio measures a bank's core capital relative to its risk-weighted assets, indicating its ability to absorb losses. A higher ratio signals strong financial health and compliance with global regulatory standards. A 13 per cent CET1 ratio indicates that Canadian banks are well-capitalized — significantly above the international regulatory minimum of 4.5 per cent, and even above the commonly recommended levels of around 10–11 per cent. This gives them a strong buffer to absorb losses in times of economic stress. The report raised concerns about the real estate market in Canada. 'As of December 2024, approximately 60 per cent of mortgages will renew by 2026 at likely higher rates, which could increase payment burdens and delinquencies if economic conditions deteriorate,' it said. Canada has the highest household debt-to-GDP ratio among G7 countries, a key vulnerability flagged by the IMF. While it reflects strong credit access and homeownership, it also leaves households — and the broader economy — more exposed to rising interest rates, job losses or housing market downturns. On the positive side, the report noted Canada's mortgage delinquency rate stood at just 0.2 per cent in December 2024 — well below historical norms — suggesting most homeowners still managed to keep up with their payments despite rising rates in the last cycle. Under the IMF's 2025 adverse scenario, mortgage default rates are projected to rise to 0.9 per cent for uninsured loans and 1.4 per cent for insured loans, while corporate defaults could climb from 0.5 per cent to 1.3 per cent by 2027 — posing sharper risks than anticipated in 2019. The report also warned that broader geoeconomic tensions — global conflict, shifting trade policies, reduced labour mobility and weak financial systems — posed a high risk to Canada's economic outlook. Other emerging threats include cyber-attacks, climate change and a potential housing market correction. The IMF flags cyber risks as high, noting they could disrupt payment systems and undermine financial institutions' ability to function. Cuts to Canada's growth 'stand out' in latest IMF economic outlook Canada set to be fastest growing economy in G7 in 2025, IMF forecasts Climate-related disasters, such as wildfires and floods, carry medium-level risk, potentially triggering credit and liquidity stress. A sharp decline in home prices could drive up loan-to-value ratios, raise unemployment and curb household spending and investor confidence. Inicia sesión para acceder a tu portafolio
