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Despite low interest rates, most Canadians not looking to sell their home

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Despite low interest rates, most Canadians not looking to sell their home

Are you considering selling your home right now?

A recent survey from CIBC found, despite the fact prices are soaring and interest rates are low, most homeowners are not interested in selling right now.

Before the pandemic, only six per cent of Canadians said they were planning to sell their homes, and, according to the findings, 77 per cent said the pandemic has not convinced them to sell.

Rather, 34 per cent have taken on a home-improvement project over the last year, while 31 per cent intend to do so in the near future.

Of those who have made renovations to their homes, 71 per cent funded the project with their savings.

The most common home-improvement projects—54 per cent—were related to basic maintenance, while 45 per cent took on a landscaping project, 32 per cent renovated their bathroom, 26 per cent took on a decorating project, and 24 per cent renovated their kitchen.

“As a potential homebuyer, these results suggest that supply won’t be improving in the near term, which makes it essential to understand what you can comfortably afford within your budget, and work with an advisor before you start looking at homes to have appropriate financing options in place,” Carissa Lucreziano, vice-president of CIBC Financial and Investment Advice, said in a news release.

“It’s a positive sign that many homeowners are using cash versus debt to fund renovations – we’re seeing prudent financial behaviour from this group. But whether you’re looking to sell or buy a home, or invest in renovations, these are big decisions that would benefit from the advice of a financial expert,” she continued.

For those who rent, 47 per cent are still unable to afford a home—34 per cent cited their inability to save money for the down payment as their biggest obstacle.

Additionally, 69 per cent of renters said they would not consider adding a roommate to reduce their monthly costs.

“It appears for those looking to get into the housing market, financing and a lack of understanding remains an issue. With the help of an advisor, you can get an assessment of your financial capacity for a clear picture of what you can afford as a new homebuyer to achieve the ambition of homeownership,” Lucreziano added.

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