First-time buyers are seeing more opportunities as interest rates fall and more homes hit the market, but most are still choosing to wait before making a move.
A new Royal LePage survey found that 13% of Canadian adults are working toward their first home purchase within the next two years, with the majority planning to buy in 12 to 24 months.
“Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favourable conditions for long-awaited entry into home ownership, especially in costly cities like Toronto and Vancouver. Yet, hesitation remains,” said Phil Soper, president and CEO of Royal LePage.
“For some, ongoing economic uncertainty, particularly surrounding trade relations with the United States, is prompting them to hold off until there are signs of stability. Buying a home is the biggest financial decision most people will ever make, and first-time buyers naturally want to do so with as much certainty as possible.”
Some buyers are holding off, hoping for better deals. With possible Bank of Canada rate cuts ahead, those not in a hurry are saving more and carefully planning to buy when the time feels right.
Market conditions and buyer behaviour
While 36% of Royal LePage professionals reported increased first-time buyer activity this year, a significant portion of buyers are still in research mode. More than half (51%) are scoping out affordable neighbourhoods, and only 19% have begun viewing homes in person.
The aggregate price of a Canadian home rose just 0.3% year over year to $826,400 in Q2 2025, with a slight 0.4% dip quarter-over-quarter, according to Royal LePage’s latest market update.
Financial support and affordability
Family assistance remains a key factor for many, but not all, first-time buyers. Forty-one percent said they would receive financial help from family or friends, while 51% would not.
“This transfer of wealth has become increasingly common, as parents look to give their children the same opportunity for stability and long-term financial growth that they themselves experienced through home ownership,” Soper said.
Still, most buyers are finding their own way—cutting back on spending, searching in more affordable areas, or tapping into investments and retirement savings. A new National Payroll Institute survey conducted among 2,320 working Canadians showed that Gen Z workers save an average of 11% of each paycheque, more than any other generation. Nearly 70% of Gen Z respondents reported trying to save more this year, compared to 56% of millennials and just 36% of boomers.
Meanwhile, more than half (53%) of first-time buyers intend to put down at least 20%, but 39% expect to buy with less and will require mortgage insurance. The Canada Mortgage and Housing Corporation (CMHC) reported a 28% year-over-year increase in insured units in Q2 2025.
“The growing number of buyers opting for mortgage insurance suggests that many are willing to accept the added monthly cost in order to get on the property ladder sooner with a smaller down payment, rather than risk being priced out when property values rise,” Soper said.
Regional realities and buyer preferences
Across the country, detached homes remain the top choice for first-time buyers, though budget realities often lead to compromises. In Ontario, 15% of adults are working toward a first purchase, with 54% targeting detached homes and a typical budget between $500,000 and $750,000. In British Columbia, nearly half of first-time buyers are looking at condos or apartments, reflecting higher prices and affordability challenges.
Move-in ready homes are the most sought-after non-price feature, cited by 21% of Royal LePage professionals, followed by outdoor space and access to amenities. “With many employers requiring staff to return to the office, proximity to transit and other amenities has become an increasingly important factor in the search,” Soper said.
CMP
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