Millennials are ready to buy real estate as interest rates are historically low

The recent poll by Scotiabank shows that lower interest rates are the main reason why young Canadians now want to enter the real estate market.

In spite of the global pandemic, 18% of Canadians aged 18-34 noted their plans to purchase a property have accelerated.

The poll says the lower interest rates are the key factor affecting millennials’ optimism.

According to Scotiabank, one-quarter of respondents expect housing prices to fall in 2021, and the younger category showed the strongest optimistic. The report says 36% of Canadians aged 18-24 predict a prices decline, while in case of those aged 35-54 the number is 24%. And it was only 17% in case of respondents over 55 years old.

As you know, in July, the central bank’s Governor Tiff Macklem assured Canadians that the historic low interest rates will remain unchanged for a long time. He also repeated it at the Bank’s previous meeting, saying rates will stay low until at least 2023.

“We want the Canadians to understand that interest rates will remain low for a long time,” – Macklem said in July.

“If you have a mortgage or you’re planning a home purchase, if you have a business and you’re thinking about investing, you can be sure rates will be low for a long time.”