There is a new wave of Canadian homebuyers entering the market, equipped with digital tools, family support, and some financial pressure.
Based on the 2025 CMHC Mortgage Consumer Survey, the number of first-time homebuyers is increasing, with digital research being the norm and more buyers pushing their budgets to the limit.
While mortgage renewals are still common, the percentage of new buyers has grown this year. First-time buyers now make up 12 per cent of mortgage activity, up from 10 per cent in 2024. These buyers are hopeful, with 74 per cent believing in the investment value of their purchase, but many are relying on financial gifts and are already feeling the impact of higher costs.
Digital-first decision making
Homebuyers are increasingly turning to the internet and social media to navigate the complex process of buying a home.
A significant 77 per cent of respondents conducted online research, with YouTube being the most used social channel. First-time buyers were particularly engaged: 85 per cent compared interest rates, 82 per cent used online mortgage calculators, and 71 per cent submitted a mortgage pre-qualification or pre-approval online.
However, technology is not replacing human expertise. Overall, Realtors were considered the most valuable people during the homebuying process (28 per cent among first-time buyers and 37 per cent among repeat buyers).
How are they affording homes?
The report provides insights into how new buyers are breaking into the market.
Gifts and inheritances played a significant role, with 41 per cent of first-time homebuyers receiving one, averaging $74,570 towards their down payment. Despite this assistance, most said they could have purchased a home without the gift, but with some concessions.
Saving up was also challenging. First-time buyers reported an average of 3.7 years of saving, and 65 per cent paid the maximum they could afford. Overall, 58 per cent of homebuyers paid the maximum price they could afford, up from 46 per cent last year. This number increased even further in provinces like British Columbia and Ontario.
Sticker shock still common
More homebuyers faced unexpected expenses this year (42 per cent, up from 36 per cent in 2024). The most common surprise costs were immediate repairs, lawyer or notary fees, and home inspections. Buyers relied heavily on credit and family loans to cover these unexpected expenses, with a decrease in reliance on personal savings.
In addition to financial stress, over half of first-time homebuyers reported difficulty in keeping up with debt payments. Nearly one in six missed a mortgage payment, and 63 per cent expressed concerns about potentially defaulting in the future, with cost-of-living increases and interest rates being key worries.
Jordana is the editor of Real Estate Magazine. You can reach her by email.
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