June 30: BEST FROM THE BLOGOSPHERE

June 30, 2025

Saving for a down payment seen as a barrier to home ownership: CPA Canada

One reason why younger Canadians aren’t able to save as much as they’d like for retirement may be the fact that they are struggling to save enough – first – to get into the housing market.

New research from CPA Canada and BDO Debt Solutions paints a gloomy picture of the struggles faced by those hoping to be homeowners.

“As rent prices outpace inflation and wages lag, one-in-three (32 per cent) Canadians say saving for a down payment is the biggest barrier keeping them out of the housing market,” states a media release from CPA Canada.

A further 30 per cent, the release continues, point to the “ongoing cost of mortgage payments” as an obstacle to home ownership. Only 10 per cent of those surveyed say they favoured the “flexibility of renting.”

“With 43 per cent of all respondents reporting the high cost of living as their top financial challenge—and another 14 per cent pointing to paying down debt—many Canadians are struggling to manage day-to-day expenses, let alone save for a home,” the release notes.

“Like sucking the oxygen out of a room, rising housing costs in Canada leave little left for consumers to spend in the overall economy,” states David-Alexandre Brassard, Chief Economist at CPA Canada, in the media release. “High down payments restrict access to real estate investments and exacerbate wealth inequality, leading to social consequences,” he states in the release.

High housing costs may also explain “the growing reliance on credit and shrinking emergency savings,” states Nancy Snedden, Licensed Insolvency Trustee and President at BDO Debt Solutions, in the release.

“The dream of owning a first home is slipping away for many Canadians. With the cost of living on the rise, saving for a home has become increasingly challenging,” Snedden states in the media release. “It’s concerning that only two per cent of non-homeowners in Canada are able to make their emergency fund a financial priority, while many are relying on credit to cover their expenses,” the release continues.

It’s creating a strange, divided society, the release adds.

“The results also reveal a clear generational divide: while three quarters (74 per cent) of Canadians aged 55 and older own their homes, that number drops to 63 per cent for those aged 35 to 54, and just 31 per cent for Canadians aged 18 to 34,” the release tells us.

Getting into the housing market is worth the effort financially, the release concludes.

“Homeownership is closely tied to financial stability and wealth accumulation,” states Li Zhang, Financial Literacy Leader at CPA Canada, in the release. “This is reflected in the behaviour of Canadians: homeowners are more likely to save for retirement and invest, while renters often live paycheque to paycheque. Only four per cent of renters report prioritizing lifestyle spending—most are simply struggling to cover the basics.”

Homeowners are more likely to be savers, the release concludes, with 28 per cent of them saying “the top financial goal is saving for retirement or long-term investments.”

It’s clear that homeownership is a greater challenge today than perhaps ever before. However, even if one’s focus is chiefly on getting money together for that downpayment, be sure to save something – even just a little bit – for your future, retired you.

The Saskatchewan Pension Plan does not, unlike most pension plans, have a set contribution rate. You can contribute, as a member, as much or as little as you want. When saving for that house, perhaps you keep your contributions low – once you are in that new home, maybe you can begin to start ratcheting up the contributions. SPP provides the savings flexibility that many of us need.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

CPA Canada

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