In a recent survey of 2,000 Canadians, 9 in 10 aspiring homeowners reported feeling “locked out” of ever owning a home someday. With the large barriers to traditional homeownership, it’s no wonder that a sense of hopelessness is being shared among aspiring first time homebuyers in Canada. So what are the barriers to owning that are leaving so many people out in the cold? A survey by Abacus data asked this group of aspiring homeowners why they feel locked out of ever owning, here’s what they said.

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They are not able to save enough for a 20% down payment

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The survey revealed 46% of non-homeowners feel that they do not have enough money saved up to pay a 20% down payment in the community they live in.For many Canadians this finding comes as no surprise, as we know that it now takes the typical urban Canadian homebuyer 28 years on average to save enough for the recommended 20% down payment.As rising housing prices continue to outpace wage growth, many feel stuck in a cycle of saving up only to be met with higher housing prices, and forced to continue renting.

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They are self-employed

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For those who are self-employed, qualifying for a mortgage can be especially difficult. Without a stable income, lenders often see you as a higher risk, making them less likely to provide you with a loan. Among the aspiring homebuyers surveyed, 14% listed being self-employed as a reason that they feel locked out of ever owning.

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Canadians seeking alternatives

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The traditional ownership model doesn’t work for everyone. This highlights the need for alternative pathways to homeownership that better meet the financial and personal needs of today’s aspiring homeowners. Key’s innovative homeownership program removes the two biggest barriers to traditional ownership: the need for a significant down payment and the requirement to qualify for a mortgage. By moving in with as little as 2.5% down, aspiring homeowners can start their journey toward full ownership while benefiting from increases in the home’s value over time. Learn more about how Key's program works here.