With record-breaking numbers of immigrants in Canada, there will be anticipated consequences on the already heated property market, particularly regarding home prices. A report by Zoocasa notes:
the more people who live in Canada, the more homes are needed, which will exacerbate the already limited supply of homes
The influx of new residents, both domestic and international, is posing significant implications for the real estate landscape. Canada is expected to take in over 500,000 immigrants annually starting in 2025 which will result in upward prices of homes.
As competition intensifies and the supply struggles to keep pace with population growth, prospective buyers may face challenges in finding affordable properties, thus impacting the overall housing market’s balance.
$175k household income is needed to afford a 1,500-sq-ft home in Ontario
With the impact of population growth on home prices and affordability, sound financial decisions are becoming increasingly more crucial. Some banks are challenging the status quo to ease the financial burden of prospective homebuyers when purchasing a new home.
EQ Bank unveiled its Tax-Free First Home Savings Account (FHSA) for prospective homebuyers. It is Canada’s first “fully digital, no-fee” FHSA Savings Account, and says it offers the best interest rate nationwide at 3.00%.
As Canada witnesses an unprecedented surge in population growth, the consequences cannot be ignored. It is important for both buyers and sellers to be well-prepared in the face of this dynamic housing market.
