Majority of aspiring homeowners awaiting rate cuts before buying: BMO survey

The majority of Canadians aspiring to purchase a house say they may push their plans to subsequent yr or later to attend for rates of interest to drop, a brand new survey reveals.

Bank of Montreal says 72 per cent of respondents hoping to purchase a house will wait till borrowing prices fall — a rise of 4 per cent in contrast with final yr.

While rate of interest cuts are anticipated within the second half of the yr, BMO Capital Markets senior economist Robert Kavcic says it’s nonetheless a good distance for charges to be low sufficient to revive affordability to latest norms.

The survey, performed by Ipsos from Feb. 28 to March 18, reveals 85 per cent of respondents say they’re making actual monetary progress towards shopping for their first dwelling however face monetary anxiousness.

Among the highest considerations are sudden bills, local weather concerns equivalent to wildfires and the excessive prices of homeownership.

BMO’s Hassan Pirnia says regardless of the financial and market challenges, many younger Canadians are getting ready to embark on their homebuying journey and enter the actual property marketplace for the primary time.