First-time buyers remain a key cohort in the
residential real estate market, and Canada Mortgage and Housing Corporation is
offering some detailed insights into this group.
More First-timers
The latest CMHC Mortgage Consumer Survey
indicates the number of first-time buyers is growing, making up 12% of those
who took out a mortgage in the past 18 months, up from 10% in 2024 survey.
Gen-Z Dominates
Nearly half (47%) of the first-time buyers who
purchased a home in the survey period were between 25 and 34 years-old. This demographic has dropped off over the
last couple of surveys. It peaked at 56%
in 2023 and 2024. First-time buyers also
seem to be getting a little older. The
2025 survey shows those over 35 accounted for 39% of buyers, up from 30% in
2023 and 33% in 2024.
Perhaps as a consequence of being a little
older, first-timers are coming into the market with higher incomes. CMHC shows the median income in 2025 as
$105,000. Five years ago, it was in the
$60,000 to $90,000 range. More than 90%
of first-time buyers are employed and just over 70% are married or in a common
law relationship. More than half are in
households with children.
Family Financial Help
The “Bank of Mom and Dad” (or Grandma and
Grandpa) continues to be a popular source for funding. CMHC says 41% of first-time buyers used a
gift or inheritance to help make their purchase. Perhaps as an extension of the family help, a
growing number of first-timers (54%) are making a shared purchase with an adult
other than a spouse or partner. Usually
the arrangement includes a parent but it can involve friends or other,
likeminded, individuals.
Social Media is a Growing Influence
Not surprisingly internet savvy Gen-Z
homebuyers are doing their research online and so are most other mortgage
consumers; 77% reported using the web as a prevalent source for
information. Increasingly mortgage shoppers
who search online are turning to social media for their information. CMHC reports social media use jumped to 54%,
in 2025 compared to 29% in 2024. Of
those searching online, 30% looked to YouTube with 27% turning to Facebook.
Some Traditions Persist
After all that research, most first-time
buyers continued to choose 5-year, fixed rate mortgages. However, the demand has dropped considerably
from 71% in the 2024 survey to 56% for 2025.
About a quarter of respondents went for variable rate mortgages, up
about 5.0% from the previous survey.
Fifteen percent opted for combination loans, up 10%.