More than 68 per cent of Canadians are planning on waiting until mortgage rates drop to purchase a home. According to BMO’s Real Financial Progress Index, half are deferring their home purchases due to concerns about the economy, while 18 per cent plan on waiting until 2024 or later.

A smaller percentage are no longer sure if or when they will ever buy. According to BMO Economics, Canadian housing activity has rebounded from the slow start in 2023, with home prices firming and existing home sales increasing by 11.3 per cent in April – the largest monthly rise since 2009.

However, after last year’s price correction, the combination of past price gains and higher mortgage rates leaves housing affordability near the most challenging level in more than 30 years.

Housing costs are among the top three sources of financial anxiety for Canadians, after fears of unknown expenses and concerns about their overall financial situation. Many people are also rethinking refinancing. An estimated 69 per cent plan on waiting until mortgage rates drop.

When the time is right, Canadians intend on using different financing strategies for their home purchase. Half plan on using personal savings to pay for their home, 41 per cent will depend on loans and/or lines of credit for help. Family support and home-buying programs are also on the list. Among the 46 per cent planning on using Canada’s assistance programs, nearly a third plan on using the First-Time Home Buyers Incentive and 16 per cent plan on using the Home Buyers’ Plan.