The 2025 CMHC Mortgage Consumer Survey reveals a notable increase in first-time homebuyers entering the Canadian housing market, driven by enhanced financial readiness and supportive policy changes. This trend is particularly obvious in Alberta, where cities like Calgary and Edmonton are experiencing heightened activity.

First-Time Buyers: Entering the Market Sooner

First-time buyers are now entering the market more swiftly, with the average time to save for a down payment decreasing to 3.4 years in 2025, down from 4.2 years the previous year. Additionally, these buyers spent an average of 6.3 years in the rental market before purchasing their first home, indicating a trend towards earlier homeownership.

Policy Changes Enhancing Affordability

Recent federal regulations have introduced 30-year amortizations for insured mortgages (those with less than a 20% downpayment), making homeownership more accessible. This change, along with the allowance for lower down payments of 5% to 10%, has reduced monthly mortgage costs and eased qualification criteria, benefiting first-time buyers significantly.

Family Support: A Growing Trend

Chances are, many of the first time home buyers you know got at least a part of their downpayment from family. The reliance on family assistance has grown, with 41% of first-time buyers using gifts or inheritances averaging $74,570 to help in their home purchases. This support has become crucial in bridging the affordability gap, especially in markets with rising home prices.

Co-Ownership and Co-Signers on the Rise

More than half of first-time buyers are now purchasing homes with someone other than a spouse or romantic partner, often involving co-signers like parents. This strategy helps buyers meet stringent mortgage qualification requirements, reflecting the challenges of entering the housing market independently.

Refinancing: Managing Financial Pressures

While concerns about a “renewal tsunami” in 2025 appear to have been mitigated by recent rate cuts, many homeowners are still facing higher interest rates upon renewal. This has led to a wave of refinancing, with 20% of refinancers shortening their amortization periods and others extending them to manage monthly payments.

Renovations: A Focus on Home Improvements

More and more home owners are investing in renovations, with 66% of refinancers having completed renovations in the past three years and 77% planning to do so within the next five. Energy-efficient upgrades and the addition of secondary suites are among the most popular improvements, driven by both personal preferences and available incentives.

Navigating a Complex Market

The current housing market presents both opportunities and challenges. First-time buyers are benefiting from policy changes and family support, while existing homeowners are adapting through refinancing and renovations. In this dynamic environment, seeking professional mortgage advice is more important than ever to make informed decisions and achieve homeownership goals. Reach out to me directly to navigate the options available to you.