Canadians continue to favour home ownership over renting despite rising home prices and modestly higher interest rates, according to the results of a study released today by Bank of Nova Scotia.

The study indicates that 30% of Canadian renters plan to purchase a home within three years.

“Steady job and wage gains continue to support Canadians who want to make the move from renting to owning,” said Adrienne Warren, Senior Economist, Scotia Economics. “Many potential new homeowners, however, will look to less expensive housing options such as townhomes and condominiums due to some erosion in overall affordability.”

Despite the optimistic view of homeownership, current renters who are not planning to buy, outlined a number of deterrents to purchasing a home. The study found the most commonly cited reasons include: commitment of ownership (37%), high cost of real estate (17%), living paycheque to paycheque (12%), poor credit (7%), and student loans (5%).

“With interest rates still at a historical low, and an abundance of flexible borrowing and mortgage options, buying a home is more affordable than many people think,” said David Bach, author and Special Advisor to Scotiabank.

The study also found that 31% of Canadian renters do not know why they are not planning a home purchase. This finding may indicate that many renters are not giving home ownership enough consideration and do not have a plan in place.

Survey findings are based on a Decima Research Inc. national omnibus telephone poll conducted on behalf of Scotiabank in February 2006.