Twenty-nine per cent of Canadians between the ages of 21 and 34 are living with their parents while saving for their home down payment, according to new survey of potential first-time homebuyers.

In Canada’s biggest cities, such as Toronto and Vancouver, the numbers are significantly higher, suggesting that staying on at the old homestead is considered the fastest route to jumping onto the property ladder.

The BMO Bank of Montreal survey, conducted by Decima Research, polled 1,205 young adults aged 21 to 34 from Halifax, Montreal, Toronto, Winnipeg, Calgary and Vancouver who had aspirations to purchase a home in the ‘near’ future. According to the survey, almost one in three are living with their parents while they prepare to make the transition to home ownership.

While it is no surprise that Canadians under the age of 30 are staying home longer, whether to attend school or save for a home purchase, what is surprising is the number of Canadians in the 31 to 34 years old category who are also still at home. According to the survey, the Greater Toronto Area (GTA), Halifax and Calgary have the highest percentage of ‘stay-at-homes’ who are older than 31 years of age (22% in the GTA and 17% in both Halifax and Calgary).

“A red hot real estate market and rising home prices have likely contributed to this trend,” said Cid Palacio, vp, BMO Bank of Montreal, in a news release. “But these factors may also contribute to a sense of urgency amongst young first-time homebuyers who feel they don’t have the requisite finances and may have to scramble to cobble together a down payment. Some of this anxiety may be avoidable by developing a financial plan early that sets realistic short-term and long-term financial goals.”

Palacio noted that the BMO survey found a considerable gap between potential first-time buyers’ expectations and their realities when it came to planning and saving to buy a home. “We found that, although most young Canadians would like to purchase a home within the next few years, most do not have a practical plan to get there.”

According to the survey, Canadians between the ages 21 and 34, on average, have been saving for their down payment for only 1.6 years yet expect to take only a total of 3.8 years to save enough to commit to a purchase.

“On average, young Canadians told us they expected to be able to amass a down payment representing 15.4% of the cost of a new home by the time they are ready to make a purchase,” said Palacio. “I’m concerned, however, that these expectations are unrealistically high given their low savings rate and the increasing cost of housing in markets across the country.

“If the study reinforces one thing it is that more young Canadians need to sit down with a financial planning professional to develop a realistic game plan, if they are going to shorten their stay with their parents and make their home ownership dreams a reality,” said Palacio.