Meet the 31-year old who paid off his mortgage in three years
The majority of Canadian millennials plan to buy a home soon, but face significant financial barriers, including slow salary growth and price inflation, according to a new HSBC survey.
The global report, “Beyond the Bricks: The meaning of home,” asked 9,000 people in nine countries, including 1,000 Canadians, about their attitudes toward home ownership.
The majority of Canadian respondents, 82 per cent, said they plan to purchase their first home in the next five years. Of those planning to purchase a home in the next two years, 27 per cent said they don’t have an overall budget in mind and just over half have set an approximate budget.
"This study challenges the myth that the home ownership dream is dead for millennials – be it in Canada or around the world," Larry Tomei, the executive vice president and head of retail banking and wealth management of HSBC Bank Canada, said in a release.
“The reality is, it’s a challenge – and so I can't stress enough the importance of having a good plan that includes getting the right financial services advice and support before and after you buy."
Just over a third of millennials in Canada currently own a home, according to the survey, with more than 37 per cent saying they had to rely on “the bank of mom and dad” to afford it.
Additionally, one fifth said they moved back into their parents’ home in order to save for a down payment.
However, almost 60 per cent of Canadian millennials said they would consider spending less on leisure to afford a home and almost a third said they would even delay having children.