Almost half of all Canadians in the B.M.O Housing Confidence survey say they plan to buy a home in the next five years which is considered a sign of confidence in the economy.      

The concern comes in the form of rising mortgage rates and housing prices.   

Ian Lee of the Sprott School of Business tells 1310News that interest rates have a bigger impact on consumers.

“While house increases understandably turn people off, I don’t think it stops people from buying,” said Lee.

He added that housing prices don’t impact consumers until they go to put their money down.

The report forecasts a two per cent hike in housing prices in Canada while a possible five per cent jump would cool the market considerably.       

Canadians are also taking stock of the issue of rising household debt.  92 per cent of those asked realize the problem and they are curbing their spending to ensure home ownership.   

One third have cut back on big purchases and entertainment, while 17 per cent have dipped into their savings to make a mortgage payment.   

Lee tells 1310News, Canadians realize the value of home ownership as we have one of the highest ownership rates in the world.  

“It’s still seen as probably the single most important asset that a household or consumer can make,” Lee said.

In terms of household debt, 19 per cent of respondents say they are struggling with it right now.