In a recent survey of 2,000 Canadians, 9 in 10 aspiring homeowners reported feeling “locked out” of ever owning a home someday. With the large barriers to traditional homeownership, it’s no wonder that a sense of hopelessness is being shared among aspiring first time homebuyers in Canada. 

So what are the barriers to owning that are leaving so many people out in the cold? A survey by Abacus data asked this group of aspiring homeowners why they feel locked out of ever owning, here’s what they said.

They are not able to save enough for a 20% down payment

The survey revealed 46% of non-homeowners feel that they do not have enough money saved up to pay a 20% down payment in the community they live in.

For many Canadians this finding comes as no surprise, as we know that it now takes the typical urban Canadian homebuyer 28 years on average to save enough for the recommended 20% down payment.

As rising housing prices continue to outpace wage growth, many feel stuck in a cycle of saving up only to be met with higher housing prices, and forced to continue renting.  

They plan on moving around, or are unsure of their timeline

For many aspiring homeowners, flexibility is important to them. In fact, 40% of non-homeowners surveyed listed that they plan to change where they live in the next five years, and 12% listed they plan to move around fairly frequently. 

The reality is that taking on a conventional mortgage can be difficult to exit should you wish to move around, and may involve expensive mortgage break fees. If you’re looking for a more flexible lifestyle but want to start owning and building home equity, co-ownership may be a solution to consider. 

They are self-employed

For those who are self-employed, qualifying for a mortgage can be especially difficult. Without a stable income, lenders often see you as a higher risk, making them less likely to provide you with a loan. 

Among the aspiring homebuyers surveyed, 14% listed being self-employed as a reason that they feel locked out of ever owning. 

They are unable to take on a mortgage do to their faith

The conventional mortgage model is locking out many Canadians for different reasons, 9% of aspiring homeowners listed that they cannot take on a mortgage that pays interest to a lender due to their faith. 

With so many barriers preventing Canadians from owning the traditional way, we need alternative homeownership solutions more than ever

Key’s co-ownership model removes the two largest barriers to traditional homeownership: needing to save a significant amount for a large down payment and being required to take on a mortgage. By removing these two barriers, our model allows more Canadians to get on the property ladder many years sooner.

While Key’s innovative model is new, the positive sentiment is growing. In fact, in the same homeownership survey, 90% of respondents agreed that co-ownership would make home ownership accessible to more people. And when put against rent-to-own programs, co-ownership would win in a landslide. 

If you’re an aspiring homeowner who’s feeling stuck renting and struggling to get onto the property ladder, consider looking into alternative homeownership models and learning if co-owning with Key could make sense for you.