A new wave of Canadian homebuyers is entering the market armed with digital tools, family support and a hint of financial pressure.
According to the 2025 CMHC Mortgage Consumer Survey, the share of first-time homebuyers is on the rise, digital research is the norm and more buyers are stretching their budgets to the limit.
While renewals remain the most common mortgage transaction, the proportion of new buyers grew this year, with first-time purchasers making up 12 per cent of mortgage activity, up from 10 per cent in 2024. These buyers are optimistic, with 74 per cent believing their purchase is a good investment, though many are relying on financial gifts and are already feeling the squeeze of higher costs.
Digital-first decision making
More than ever, homebuyers are turning to the internet and social media for help navigating the complex process of buying a home.
A whopping 77 per cent of respondents conducted online research, with YouTube edging out Facebook as the most-used social channel. First-time buyers were especially plugged in: 85 per cent compared interest rates and 82 per cent used online mortgage calculators, and 71 per cent submitted a mortgage pre-qualification or pre-approval online.
Still, technology isn’t replacing human expertise. Overall, Realtors were seen as the most valuable person 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 paints a revealing picture of how new buyers are managing to break into the market.
Gifts and inheritances played a major role, with 41 per cent of first-time homebuyers receiving one, averaging $74,570, towards their down payment. Despite the boost, the majority said they could have bought a home without the gift, but “with some concessions.”
Saving up wasn’t easy either. 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. In provinces like British Columbia and Ontario, that number climbed even higher.
Sticker shock still common
More homebuyers encountered 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 leaned heavily on credit and family loans to cover the gaps, with reliance on personal savings declining.
Adding to the financial stress, over half of first-time homebuyers reported difficulty keeping up with debt payments. Nearly one in six missed a mortgage payment, and 63 per cent expressed concern about potentially defaulting in the future, most citing cost-of-living increases and interest rates as key worries.
Jordana is the editor of Real Estate Magazine. You can reach her by email.
