Canada's real estate market is primed for buyers - but first-timers are moving at their own pace

Highlights:

• 13% of Canadian adults are working towards their first residential property purchase within the next two years; a majority of them plan to buy in the next 12 to 24 months.
• More than half (53%) of first-time buyers plan to put at least 20% down on their purchase; while 39% will not and will therefore need to buy mortgage insurance.
• 41% of first-time buyers say they will receive financial assistance from family or friends, while 51% will not.
• Single-family detached properties remain the most popular housing type among first-time buyers.
• Finding a home that is move-in ready is the most important non-price related factor for first-time buyers, according to Royal LePage^® professionals across the country.

TORONTO, Sept. 25, 2025 /CNW/ - Declining interest rates, higher inventory levels and softening home prices in major cities are opening new doors for first-time buyers in 2025. Still, despite more favourable market conditions, many are choosing to delay their purchase plans, intending to hold off for at least another year.

According to a recent Royal LePage survey, conducted by Burson,¹ 13 per cent of Canadian adults say they are actively working towards the purchase of their first residential property within the next two years. Of this group, a small proportion say they are working towards their first purchase within the next 12 months, while the majority (82%) say they are planning to make a purchase in 12 to 24 months.

When asked what stage of the purchasing process they are in, more than half (51%) of first-time buyers said they are currently researching neighbourhoods where they can afford to live, 49 per cent are actively browsing online listings, 19 per cent are actively viewing homes listed for sale in person, and 19 per cent have engaged with a real estate agent. Respondents were able to select more than one answer.

"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, 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.

"Others are choosing to wait in hopes of securing a better deal. With the potential for further rate cuts from the Bank of Canada this year, those in no rush to purchase now are taking a methodical approach – building up their savings and deliberately planning their entry into the market when they feel the timing is best for them."

According to a recent Royal LePage survey of real estate professionals across the country who work with first-time homebuyers,² 36 per cent report an increase in first-time buyer activity so far this year, while 25 per cent report no change. This, despite home prices holding relatively steady, a trend that would typically encourage new buyers to enter the market. According to the most recent Royal LePage Home Price Update and Market Forecast, the aggregate price of a home in Canada increased just 0.3 per cent year over year to $826,400 in the second quarter of 2025.³ On a quarter-over-quarter basis, the national aggregate home price decreased by 0.4 per cent.

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¹ Burson used the Leger Opinion online panel to survey 2,500 adult residents across Canada. The survey was completed between August 4 and August 9, 2025. Age, gender, and regional weighting was applied to ensure representation at a national level according to 2021 census figures. See methodology at the end of the press release for more information.

² A national online survey of 307 Royal LePage brokers and sales representatives serving buyers and sellers in Canada was conducted between September 6th, 2025, and September 17th, 2025.

³ Better late than never: Spring market stumbles to a sluggish start with economic unease a drag on homebuying activity in Q2, Royal LePage, July 2025

Financial support continues to flow from family to first-time buyers

While many buyers continue to rely on help from family to make their first home purchase, most do not. When asked if they would receive any financial assistance towards the purchase of their first residential property, more than half (51%) said they would not receive any help. Meanwhile, 41 per cent of first-time buyers said they would. Even as affordability has improved in several markets over the past year, many first-time purchasers continue to rely on financial support to take their first step onto the property ladder.

Among first-time homebuyers who will receive financial support, 29 per cent say it will be in a lump sum with no repayment expected, 27 per cent will receive a loan from family or friends that they will pay back, 28 per cent will have a family member or friend co-sign their mortgage loan, and 26 per cent will receive financial assistance towards their monthly mortgage payments. Respondents were able to select more than one answer.

"Despite improving affordability, many first-time buyers continue to rely on family financial support. 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. For some buyers, financial contributions from family can make the decisive difference between becoming a homeowner and remaining a tenant," said Soper.

"However, many lack access to this kind of support, forcing them to adopt more creative and often difficult approaches to saving. Some delay major life milestones, such as marriage or starting a family, in order to prioritize home ownership. Others cut back significantly on discretionary spending, or continue living at home with parents well into adulthood to build up their savings. While determination and careful planning help these buyers reach their goals, the gap between those who receive financial assistance and those who do not highlights the deep affordability challenges in today's market."

In order to afford their first home, 60 per cent of first-time buyers say they are searching for homes in a more affordable area, 40 per cent are searching for homes that are smaller and therefore more affordable than they originally planned, 39 per cent are cutting back on discretionary spending in order to save money, and 28 per cent have or will use money from investments or retirement savings in order to fund their first home purchase. Respondents were able to select more than one answer.

More than half (53%) of first-time buyers plan to make a down payment of at least 20 per cent when purchasing a home, while 39 per cent intend to purchase with a down payment of less than 20 per cent and obtain mortgage insurance. Under current Canadian borrowing rules, buyers who put down less than 20 per cent of the purchase price are required to buy mortgage insurance.

Over the past year, demand for mortgage insurance has grown. In its Q2 2025 Quarterly Financial Report, the Canada Mortgage and Housing Corporation (CMHC) reported a 28 per cent year-over-year increase in the number of insured units for the period ending June 30, 2025.⁴ Approximately one quarter of all outstanding mortgages in Canada are insured.

"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. For some, this strategy provides a way to begin building equity now rather than waiting years to save the full 20 per cent minimum required to avoid having to buy insurance," added Soper. "This trend underscores the need for broader, more innovative financial tools and solutions to help Canadians renters to become owners."

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⁴ CMHC releases results for Q2 2025, Canada Mortgage and Housing Corporation (CMHC), August 29, 2025

The dream of a detached home lives on

Despite the hefty price tag, many first-time buyers continue to aspire to own a detached property as their entry into the market. Nearly half (49%) of respondents plan to purchase a single-family detached property as their first home, followed by 26 per cent who intend to buy a condominium or apartment, according to the survey.

When asked about the typical budget range for first-time homebuyers in their market, 55 per cent of Royal LePage professionals across Canada said it was between $500,000 and $750,000, followed by 19 per cent who said it was between $300,000 and $500,000. In the second quarter of 2025, the national median price of a single-family detached home increased 1.1 per cent year over year to $870,200, while the median price of a condominium decreased 0.8 per cent to $592,000.

"The dream of a first home often collides with budget reality. While most aspire to own a detached house, affordability often dictates a more modest starting point," said Soper. "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. New buyers also show a clear preference for properties in move-in ready condition, as few have the time or financial flexibility for major renovations."

Forty-two per cent of first-time buyers say they will prioritize the neighbourhood where they want to live, regardless of the commuting distance to their place of employment. Meanwhile, 31 per cent say they will purchase a home based on its proximity to their workplace.

When asked what non-price related features first-time buyers typically desire in their market, 21 per cent of Royal LePage real estate professionals reported newly renovated or homes in move-in ready condition as the top choice, followed by outdoor living space (17%) and convenient access to everyday amenities (17%). Respondents were able to select more than one answer.

2025 Canadian First-time Homebuyers Survey - Data Chart:
rlp.ca/2025-Canadian-First-Time-Buyers-Survey-Chart 

REGIONAL SUMMARIES

ONTARIO

In Ontario, 15 per cent of respondents say they are actively working towards the purchase of their first residential property within the next two years (3% plan to buy within the next 12 months, while 12% plan to buy in 12 to 24 months).

When asked what stage of the purchasing process they are in, 54 per cent of first-time buyers in Ontario say they are researching neighbourhoods where they can afford to live, while 48 per cent are actively browsing online listings, and 22 per cent are actively viewing homes listed for sale in person. Respondents were able to select more than one answer.

"First-time buyers who were once priced out of the market are beginning to re-emerge, encouraged by softening home prices and lower mortgage rates. Still, affordability remains a major challenge. This year alone, I've worked with more first-time buyers in Toronto over the age of 35 than at any other point in my career – a clear sign that elevated housing costs and competitive rental prices are delaying home ownership for many Canadians well beyond what we've seen historically," said Tom Storey, sales representative and head of The Storey Team, Royal LePage Signature Realty in Toronto. "It isn't just prices holding buyers back. Even those who qualify for a mortgage are hesitating, choosing to wait for greater economic stability before making one of the biggest financial decisions of their lives."

When asked if they would receive any financial assistance towards the purchase of their first residential property, 43 per cent of respondents in Ontario said they would. In order to afford their first home, 63 per cent of first-time buyers say they are searching for homes in a more affordable area, 42 per cent are searching for homes that are smaller and therefore more affordable than they originally planned, and 39 per cent are cutting back on discretionary spending in order to save money. Respondents were able to select more than one answer.

When asked what the typical budget range is for first-time homebuyers in their market, 73 per cent of Royal LePage professionals in Ontario said it was between $500,000 and $750,000. Fifty-four per cent of first-time buyers plan to purchase a home with a down payment of at least 20 per cent, according to Burson's survey.

"Today's first-time buyers are often dual-income households or single professionals who have been renting and diligently saving for their first home. At the same time, many rely on financial support from parents to bridge the gap between savings and affordability," said Storey. "Over the past year, declining home prices in the city have opened up new opportunities, especially in the entry-level condominium segment. However, prices have not fallen enough to make detached homes in Toronto widely accessible for most first-time buyers. Detached properties remain largely within reach for move-up buyers or for first-time purchasers looking beyond the 416 and into the suburban markets."

More than half (54%) of first-time buyers in Ontario plan to purchase a single-family detached property as their first home, followed by 21 per cent who intend to buy a condominium or apartment. When asked what non-price related features first-time buyers typically desire in their market, 20 per cent of Royal LePage real estate professionals reported newly renovated or homes in move-in ready condition as the top choice, followed by parking (17%) and proximity to work (17%). Respondents were able to select more than one answer.

2025 Canadian First-time Homebuyers Survey - Data Chart:
rlp.ca/2025-Canadian-First-Time-Buyers-Survey-Chart

QUEBEC

In the province of Quebec, 12 per cent of respondents say they are actively working towards the purchase of their first residential property within the next two years (10% plan to buy in the next 12 to 24 months).

When asked what stage of the purchasing process they are in, 49 per cent of first-time buyers in Quebec say they are actively browsing listings online, while 40 per cent are researching neighbourhoods where they can afford to live, 14 per cent have engaged with a real estate agent, and 12 per cent are actively viewing homes listed for sale in person. Respondents were able to select more than one answer.

"First-time buyers are very active in the market, particularly in Montreal and the surrounding area," said Geneviève Langevin, real estate broker, Langevin Immobilier at Royal LePage Altitude in Montreal. "These are often young professionals who, although they are buying property later in life than prior generations, are not hesitating to commit to real estate. We are also seeing a return to urban centres, with buyers less inclined to leave the city for the suburbs, as was the case during the pandemic. Real estate remains an excellent long-term investment, and we encourage those who can to not hesitate."

When asked if they would receive any financial assistance towards the purchase of their first residential property, nearly one-third of respondents (29%) in Quebec said they would; the lowest instance recorded amongst the provinces. In order to afford their first home, 54 per cent of first-time buyers say they are searching for homes in a more affordable area, 38 per cent are searching for homes that are smaller and therefore more affordable than they originally planned, and 38 per cent are cutting back on discretionary spending in order to save money. Respondents were able to select more than one answer.

When asked what the typical budget range is for first-time homebuyers in their market, 61 per cent of Royal LePage professionals in Quebec said it was between $300,000 and $500,000. Fifty-six per cent of first-time buyers plan to purchase a home with a down payment of at least 20 per cent, according to Burson's survey.

"In my region, which mainly covers Greater Montreal, first-time buyers are often couples in their mid-thirties looking to settle down. They are willing to compromise, particularly on the size of the home and accept the need for renovations, with location remaining the top priority," said Langevin. "The main frustration is the lack of inventory, which inevitably creates competition. We are also seeing more and more families helping their children during their lifetime by giving them part of their inheritance in advance to facilitate home ownership."

Thirty-nine per cent of first-time buyers in Quebec plan to purchase a single-family detached property as their first home, followed by 27 per cent who intend to buy a condominium or apartment. When asked what non-price related features first-time buyers typically desire in their market, 21 per cent of Royal LePage real estate professionals reported newly renovated or homes in move-in ready condition as the top choice, followed by outdoor living space (15%) and convenient access to everyday amenities (15%). Respondents were able to select more than one answer.

2025 Canadian First-time Homebuyers Survey - Data Chart:
rlp.ca/2025-Canadian-First-Time-Buyers-Survey-Chart

BRITISH COLUMBIA

In British Columbia, 12 per cent of respondents say they are actively working towards the purchase of their first residential property within the next two years (1% plan to buy within the next 12 months, while 11% plan to buy in 12 to 24 months).

When asked what stage of the purchasing process they are in, 57 per cent of first-time buyers in British Columbia say they are researching neighbourhoods where they can afford to live, while 52 per cent are actively browsing online listings, 24 per cent are actively viewing homes listed for sale in person, and 20 per cent have engaged with a real estate agent. Respondents were able to select more than one answer.

"After a period of hesitation driven by economic uncertainty, we've recently seen an increase in first-time buyer activity. Softer market conditions and the introduction of new construction incentives have given buyers more confidence to make offers," said Adil Dinani, sales representative and team lead of the Dinani Group, Royal LePage West Real Estate Services in Greater Vancouver. "Real estate ownership continues to hold strong appeal. Despite high prices, buyers remain motivated to get on the property ladder, viewing home ownership as both a financial asset and a source of long-term stability. In the Vancouver region, many first-time purchasers are established, dual-income households. While others have been comfortable renting, the desire to put down roots, especially when starting a family, has made ownership more attractive. Financial assistance from parents is also common, helping buyers supplement their savings and overcome affordability challenges in the current market."

When asked if they would receive any financial assistance towards the purchase of their first residential property, nearly half (49%) of respondents in British Columbia said they would; the highest instance recorded amongst the provinces. In order to afford their first home, 60 per cent of first-time buyers say they are searching for homes in a more affordable area, 42 per cent are searching for homes that are smaller and therefore more affordable than they originally planned, and 40 per cent are cutting back on discretionary spending in order to save money. Respondents were able to select more than one answer.

When asked what the typical budget range is for first-time homebuyers in their market, 86 per cent of Royal LePage professionals in British Columbia said it was between $500,000 and $750,000. Forty-four per cent of first-time buyers plan to purchase a home with a down payment of at least 20 per cent, according to Burson's survey; the lowest instance recorded amongst the provinces.

"Condominium prices have come down significantly, providing an easier entry point into the market, hence their popularity among new purchasers. That said, mature first-time buyers who have been saving for longer tend to set their sights on larger, family-sized homes," said Dinani. "At the same time, the region is grappling with a cost-to-deliver crisis, as rising municipal fees and construction costs make it increasingly difficult for builders to create new supply in all segments. Without meaningful progress from all levels of government, the path to home ownership for future first-time buyers could be compromised."

Almost half (49%) of first-time buyers in British Columbia plan to purchase a condominium or apartment as their first home, followed by 32 per cent who plan to buy a single-family detached property. When asked what non-price related features first-time buyers typically desire in their market, 24 per cent of Royal LePage real estate professionals reported outdoor living space as their top choice, as well as parking (24%), followed by newly renovated or homes in move-in ready condition (21%). Respondents were able to select more than one answer.

2025 Canadian First-time Homebuyers Survey - Data Chart:
rlp.ca/2025-Canadian-First-Time-Buyers-Survey-Chart

ALBERTA

In Alberta, 13 per cent of respondents say they are actively working towards the purchase of their first residential property within the next two years (3% plan to buy within the next 12 months, while 10% plan to buy in the next 12 to 24 months).

When asked what stage of the purchasing process they are in, 45 per cent of first-time buyers in Alberta say they are researching neighbourhoods where they can afford to live, while 42 per cent are actively browsing online listings, 16 per cent are actively viewing homes listed for sale in person, and 10 per cent have engaged with a real estate agent. Respondents were able to select more than one answer.

"Today's first-time buyers are navigating a softer market than the highly competitive conditions that defined the homebuying experience for many Calgarians during the pandemic. This shift has created some advantages, giving new purchasers greater bargaining power, particularly over move-up buyers who often need to sell their current property before purchasing another," said Natosha Wareham-Bakker, sales representative, Royal LePage Benchmark in Calgary. "The first-time buyer segment is largely made up of people in their late twenties and early thirties, including those relocating from higher-priced cities across Canada in search of a more affordable entry point into home ownership. Older first-time buyers, who have had more time to save, often aspire to own detached homes, while younger buyers typically gravitate toward smaller, more affordable property types."

When asked if they would receive any financial assistance towards the purchase of their first residential property, 46 per cent of respondents in Alberta said they would. In order to afford their first home, 54 per cent of first-time buyers say they are searching for homes in a more affordable area, 40 per cent are cutting back on discretionary spending in order to save money, and 29 per cent are searching for homes that are smaller and therefore more affordable than they originally planned. Respondents were able to select more than one answer.

When asked what the typical budget range is for first-time homebuyers in their market, 63 per cent of Royal LePage professionals in Alberta said it was between $300,000 and $500,000. Sixty-three per cent of first-time buyers plan to purchase a home with a down payment of at least 20 per cent, according to Burson's survey; the highest instance recorded amongst the provinces.

"Although the average age of first-time buyers continues to trend upward, Calgary remains an attractive market where buyers can get more value for their money compared to many other Canadian cities. Still, financial support from family – whether in the form of a lump-sum gift or co-signing a mortgage – is playing an increasingly pivotal role in helping first-time buyers successfully enter the market," said Wareham-Bakker. "At the same time, it's important for buyers to be financially prepared before beginning their search. Securing a mortgage pre-approval not only gives buyers a clear picture of what they can afford, but also strengthens their position when making an offer in a competitive market."

Fifty-five per cent of respondents in Alberta plan to purchase a single-family detached property as their first home, followed by 25 per cent who intend to buy a condominium or apartment. When asked what non-price related features first-time buyers typically desire in their market, 26 per cent of Royal LePage real estate professionals reported newly renovated or homes in move-in ready condition as the top choice, followed by parking (20%) and outdoor living space (15%). Respondents were able to select more than one answer.

2025 Canadian First-time Homebuyers Survey - Data Chart:
rlp.ca/2025-Canadian-First-Time-Buyers-Survey-Chart

Royal LePage resources for aspiring homeowners:

To help aspiring homeowners, Royal LePage has published a number of online resources available at the following links:

• Understanding the Bank of Canada's overnight lending rate: What it is and why it matters
• Moving to a new province? Here's how to relocate like a pro
• Federal government announces landmark adjustments to mortgage rules for first-time buyers in Canada
• 5 financial factors first-time buyers should consider on their path to home ownership
• 30-year amortizations on insured mortgages for new build homes now available for first-time buyers
• From renter to homeowner: Your complete guide to home ownership in a competitive real estate market
• Real estate terminology 101
• Expert Q&A: What you need to know about buying a property pre-construction
• Saving for your first home? Here's what you need to know about Canada's First Home Savings Account (FHSA)
• What is the Home Buyers' Plan?

About the Burson survey

Burson used the Leger Opinion online panel to survey 2,500 adult residents across Canada. The survey was completed between August 4 and August 9, 2025. Age, gender, and regional weighting was applied to ensure representation at a national level according to 2021 census figures. No margin of error can be associated with a non-probability sample (i.e., a web panel in this case); however, for comparative purposes, a probability sample of 2,500 respondents would have a margin of error of ±2%, 19 times out of 20, and findings from smaller subsamples should be interpreted with the understanding that their associated margin of error increases.

About the Royal LePage Advisor Survey

A national online survey of 307 Royal LePage brokers and sales representatives serving buyers and sellers in Canada was conducted between September 6th, 2025, and September 17th, 2025.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country's leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage^® Shelter Foundation™, which has been dedicated to supporting women's shelters and domestic violence prevention programs for more than 25 years. Royal LePage is a Bridgemarq Real Estate Services^® company, a TSX-listed corporation trading under the symbolTSX:BRE. For more information, please visit www.royallepage.ca.

Royal LePage^® is a registered trademark of Royal Bank of Canada and is used under licence by Bridgemarq Real Estate Services^®.

SOURCE Royal LePage

For further information, please contact: Charmaine de Silva, Burson on behalf of Royal LePage, [email protected], (604)-360-2328