More first-time homebuyers entering housing market but delay purchases as prices dwindle: study

Philip Soper, CEO of Royal LePage, joins BNN Bloomberg to discuss the condo market challenges.

Declining interest rates and a softening housing market could benefit first-time homebuyers, yet most people are choosing to delay their purchase plans for another year amid economic uncertainty, according to a new survey.

Royal LePage released the results of a survey on Thursday stating first-time homebuyers are moving at their own pace while highlighting trends from prospective homebuyers with feedback from real estate professionals.

“There is still a very strong desire to own property in Canada,” Anne-Elise Cugliari Allegritti, Royal LePage’s vice president of research and communications told BNNBloomberg.ca in an interview. “Many young people have seen their parents and their grandparents do well with their housing investments. We live in a country where the dream of home ownership remains well and strong.”

The Bank of Canada cut its key interest rate to 2.5 per cent earlier this month, dropping the benchmark for variable mortgage rates, which typically follow the prime lending rate. Fixed mortgages meanwhile are not set by the central bank but are influenced by bond market yields and therefore have an effect.

According to the survey conducted by Brunson, 53 per cent of respondents plan to put at least 20 per cent down on their purchase, while 39 per cent will not and will therefore need to buy mortgage insurance.

There is however no pressure to rush for a purchase as most prospective homeowners are getting their ducks in a row. Only 13 per cent of Canadian adults are working towards their first residential purchase within the next two years.

“There’s really no sense of urgency from buyers to get into the market,” said Cugliari Allegritti. “They’re seeing prices soften. Interest rates continue to go down, but they have lots of options. In today’s market, with the technology and information that everyone has at their fingertips, first-time buyers, and move up buyers alike can really do so much research.”

About 51 per cent of first-time buyers said they are currently researching neighbourhoods where they can afford to live, 49 per cent were actively browsing online listings, 19 per cent were 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.

Royal LePage also shared results from professionals across Canada. About 55 per cent said the typical budget range for first-time homebuyers in the market was between $500,000 and $750,000, followed by 19 per cent who said it was between $300,000 and $500,000.

“I think buyers, as they work their way through the market, will find that they have to prioritize whether they’re going to get a smaller property for their budget, or perhaps move a little bit further afield from the downtown core in order to get the amount of space that they need,” said Cugliari Allegritti.

While many buyers continue to rely on help from family to make their first home purchase, most do not.

• About 51 of respondents said they would not receive any help
• Approximately 41 per cent of first-time buyers said they would

Financial support from family and friends

• Among first-time homebuyers who will receive financial support, 29 per cent say it will be in a lump sum with no repayment expected
• About 27 per cent will receive a loan from family or friends that they will pay back
• Approximately 28 per cent will have a family member or friend co-sign their mortgage loan
• About 26 per cent will receive financial assistance towards their monthly mortgage payments.

Respondents were able to select more than one answer.

The Canada Mortgage and Housing Corporation (CMHC) meanwhile published a report on Wednesday, highlighting how condo sales are dwindling, inventories are rising, and a growing number of investors are experiencing financial distress due to the falling costs of condominiums.

Methodology

Burson used the Leger Opinion online panel to survey 2,500 adult residents across Canada. The survey was completed between Aug. 4 and 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.