Nearly half of Ontarians have shifted their moving plans due to high interest rates, according to the results of a new survey.
The survey from RATESDOTCA released Thursday found 48 per cent of Ontario respondents indicated that higher interest rates have affected their decision to either move, upsize, downsize or purchase a home.
Seventeen per cent of those surveyed said they delayed plans to purchase a home for the same reason.
“What the data lays bare is that more people are deeply reconsidering the use and benefit of this particular life milestone,” RATESDOTCA said in a written statement on the findings.
Since March 2022, the Bank of Canada has increased its policy rate by 475 basis points, bringing interest rates to a 22-year high of five per cent.
Before the onset of higher interest rates, the survey found 17 per cent of respondents believed purchasing a home was a “good investment.” Additionally, four per cent indicated they regret purchasing their home.
Those planning to upsize could have to delay those plans, according to the survey, which found 13 per cent of total respondents who were planning to move to a larger home have now decided not to.
Meanwhile, 10 per cent of respondents have no plans to own a home, the survey found.
Homeownership has long been viewed as a solid investment strategy, but now some Ontarians view homeownership as more of a burden.
“In the survey, 30 per cent of people believe that real estate is a good investment if you can afford it, and 17 per cent of respondents believe that homes were a good investment before the rate hikes, but do not anymore,” the survey stated. “Forty-five per cent still think it’s a good investment.”
The survey was conducted by RATESDOTCA, polling 1,751 Ontarians between Nov. 4 and 5, 2023 who used RATESDOTCA’s mortgage quoter.