Most Canadians looking to buy a home said they were putting their plans on hold until next year or later to wait for interest rates to fall, a new survey has found.

According to the Bank of Montreal, 72 per cent of respondents hoping to buy a home will wait for borrowing costs to fall, up 4 per cent from last year. While interest rates are expected to fall in the second half of the year, BMO Capital Markets senior economist Robert Kavcic says it’s still a long way off when rates will be low enough to restore housing affordability to recent norms.

The Ipsos survey, conducted from Feb. 28 to March 18, found that 85 per cent of respondents have made real financial progress toward buying their first home but are worried about finances.

The top concerns include unexpected expenses, climate factors such as wildfires, and the high cost of home ownership.

Despite economic and market challenges, many young Canadians are preparing to enter the real estate market, says BMO's Hassan Pirnia.

Mariana V