The seventh annual study analyzed the "cost of love", asking Canadians to rank financial priorities for money they designated for their wedding.
Travel? Marry? Build? When asked where they'd prefer to spend their wedding fund if they had the option, 40 per cent of survey respondents said they'd rather put the money towards a down payment on a home. Four in 10 said they would use that money to travel.
The survey also revealed:
40 per cent of Canadians would rather put wedding funds down on a home
40 per cent said they would use the money to travel
20 per cent of married Canadians wish they had invested their wedding fund instead
33 per cent of unmarried Canadians say they will invest rather than spend on a wedding
6 per cent of Canadians would reallocate their wedding fund to their education loan
33 per cent of Canadian say they would spend less than $5,000 on a wedding
"Spending thousands of dollars on an event may not make as much sense to some Canadians today—at least not for now. We are currently seeing real estate prices drop across the nation, while interest rates are on the rise," said Janine White, Vice-President of Marketplaces and Strategy Development at RateSupermarket.ca.
"Shifts in real estate prices and rising interest rates are possibly pressuring more couples to get into the market sooner rather than later and deferring wedding plans. Of course, financial goals will differ depending on the couple, but we are definitely starting to see a change in the environment, whereas in the past, a wedding was traditionally the key priority for most couples – then maybe followed by buying a home, starting a family, and retirement."
The cost of a wedding versus the cost of a home
The RateSupermarket.ca survey found 38 per cent of married Canadians wish they spent their wedding money on a down payment. It also found that a third of all Canadians said they would spend less than $5,000 on a wedding, highlighting a shift in how Canadians view their finances and the emphasis on other milestones, such as buying a house.
Canadians' can qualify for a mortgage with as low as five per cent down and according the Canadian Real Estate Association, the national average price for homes sold in December 2018 was just over $472,000 – down 4.9 per cent year-over-year.
So theoretically, if you were to buy a home at the average price, you would only need $23,600 to put down.
In comparison, the average cost of a wedding according to the 2018 Cost of Love survey was $46,401.
However, obstacles arise when considering other factors aside from just the down payment price.
"If the Bank of Canada increases the overnight interest rate over the course of the year, this will result in decreased affordability," said White. "Those looking to buy a home this year will benefit from comparing the market at RateSupermarket.ca."
About the study:
The RateSupermarket.ca study was conducted by Leger using their online panel of 1501 Canadians. This study was completed between Jan 4-7, 2019. The margin of error for this study was +/-2.5%, 19 times out of 20.
Launched in 2008, RateSupermarket.ca is Canada's one-stop shop for the best rates on personal finance products; offering over 11 million Canadians the best mortgage rates, credit cards, bank accounts and GIC rates. Headquartered in Toronto, Ontario, RateSupermarket.ca is located at 360 Adelaide Street West, Suite 100, Toronto, ON, M5V 1R7
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