First-time buyers know what they want — but not when to buy

QUICK HITS

• Thirteen per cent 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 per cent) of first-time buyers plan to put at least 20 per cent down on their purchase; while 39 per cent will not
• Forty one per cent of first-time buyers say they will receive financial assistance from family or friends, while 51 per cent 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

Many Canadians in the market for their first home have a clear picture of what they want, and falling interest rates, rising inventory and softening prices are making it more achievable. 

Still, a recent survey from Royal LePage, conducted by research firm Burson, finds that many aren’t ready to pull the trigger just yet.

The survey found that 13 per cent of Canadian adults intend to purchase their first home within the next two years. Of those, the majority (82 per cent) are targeting a purchase timeline between 12 and 24 months, rather than the next year.

More than half (51 per cent) of first-time buyers say they are researching affordable neighbourhoods, while 49 per cent are browsing online listings. Nineteen per cent have started attending in-person showings, and another 19 per cent have contacted a real estate agent.

“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,” said Phil Soper, president and CEO of Royal LePage. “Yet, hesitation remains.”

Economic uncertainty and the potential for further rate cuts are encouraging many would-be buyers to delay their entry. According to Royal LePage, 36 per cent of agents report increased first-time buyer activity this year, while 25 per cent say activity levels are unchanged.

Home prices have remained relatively flat. In Q2 2025, the national aggregate price increased 0.3 per cent year-over-year to $826,400, while quarter-over-quarter, prices fell 0.4 per cent, according to the most recent Royal LePage Home Price Update.

More than half (53 per cent) intend to make a down payment of 20 per cent or more, while 39 per cent plan to purchase with less than 20 per cent down and secure mortgage insurance.

Detached dream

Detached homes remain the preferred choice for 49 per cent of first-time buyers, despite higher prices. 

Lifestyle preferences also play a role: 42 per cent of first-time buyers say they will choose a neighbourhood based on lifestyle, even if it means a longer commute. Move-in ready homes, outdoor space and proximity to amenities remain top priorities.

To afford their first home, 60 per cent of buyers are seeking properties in more affordable areas, 40 per cent are downsizing expectations, and 39 per cent are cutting discretionary spending. Nearly 30 per cent plan to use retirement or investment savings to fund their purchase.

Family support, budget pressures shape buying decisions

Family financial support remains a key factor. While 51 per cent of prospective buyers say they will not receive any assistance, 41 per cent say they will.

Among those receiving help, 29 per cent will get a lump sum with no repayment required, 27 per cent will receive a loan, 28 per cent will have a co-signer, and 26 per cent will get help covering monthly payments.

“The gap between those who receive financial assistance and those who do not highlights the deep affordability challenges in today’s market,” said Soper.