New report highlights growing trend – but also shows more consumers are facing mounting housing costs
First-time homebuyers made up a growing share of Canada’s mortgage market in early 2025, even as more consumers struggled with debt and post-purchase costs, according to new survey data from the Canada Mortgage and Housing Corporation (CMHC).
The 25th annual CMHC Mortgage Consumer Survey, based on responses from 3,968 Canadians, found that 12% of mortgage transactions in the past 18 months were from first-time buyers—up from 10% in 2024. Renewals remained the most common mortgage transaction at 65%, followed by refinances at 18%.
The role of family and digital tools
Among first-time buyers, 64% rented before purchasing, with an average rental period of 6.3 years. Nearly half (41%) used a gift or inheritance toward their down payment, with the average gift amount reported as $74,570. Of those who received a gift, 80% said they could have purchased a home without it but with some concessions.
Digital resources were widely used in the mortgage process. Of first-time homebuyers who conducted online research, 85% compared interest rates, 82% used a mortgage calculator, 72% completed a financial self-assessment, and 71% submitted an online mortgage pre-qualification or preapproval application. YouTube (36%), Facebook (32%), and Instagram (26%) were the top platforms used for mortgage-related information.
Affordability and unexpected expenses
Data on affordability showed that 65% of first-time buyers paid the maximum price they could afford. On average, it took 3.7 years to save for a down payment. The most common sources of down payment were gifts or inheritance (41%), savings outside of a registered retirement savings plan (RRSP) (39%), and funds from a Tax-Free First Home Savings Account (FHSA) (38%).
Unexpected expenses during the homebuying process were reported by 44% of first-time buyers. The most common unexpected costs included lawyer or notary fees (34%), immediate repairs (34%), and home inspections (30%). Savings remained the most common method to cover these costs (56%), followed by credit from financial institutions (53%).
Regarding financial health, 60% of first-time buyers reported difficulties maintaining debt payments. The most common debt-related challenges involved credit card payments (27%), mortgage payments (19%), and auto loans (19%). Additionally, 17% of first-time buyers reported missing at least one mortgage payment, and 53% expressed concern about the possibility of defaulting in the future.
In the past three years, 50% of first-time buyers undertook home renovations. Looking ahead, 74% said they plan to renovate within five years. The average reported renovation cost in the past three years was $27,739. Common renovation reasons included personal customization (40%), increasing home value (36%), and adding secondary accommodation (34%).
What are your thoughts on the challenges that homebuyers face in recent times? Share your insights below.
