At a time when Canadians are grappling with historically high household debt levels, upwards of 163 per cent according to Statistics Canada, young adults are feeling insecure about their knowledge of the financial implications of homeownership. In a recent survey commissioned by The Canadian Real Estate Association (CREA), 70 percent of young Canadians between 18 and 29 indicated a “major need” for more information about the financial implications of buying a home. This figure is particularly meaningful as many in this age group are on the cusp of buying a home for the first time, and need to make informed financial decisions about their future.
Homes are a major asset, and for most Canadians, represent the single largest financial investment of their lives – and most buyers must finance their purchase using some form of credit. While homeownership can be a significant source of equity over the long term, Canadians need to remain vigilant about their finances at this critical decision point in their lives.