The Creative Ways First-Time Buyers Are Making It Work in 2025

If you're a real estate investor in Canada, the latest release from CMHC should be on your radar.

You can listen to the full episode here:

In our latest episode of The Canadian Real Estate Investor Podcast, we unpacked the 2025 Mortgage Consumer Survey – and it’s a goldmine of insight. With nearly 4,000 mortgage consumers surveyed across Canada, this annual report tells us how Canadians are buying, borrowing, stretching, and adapting in today’s housing market. As investors, it’s our job to understand the psychology and financial behavior of buyers and owners – because that’s what drives demand, supply, and price. Remember, first-time homebuyers are 50% of the buyer pool in Canada:

Here are the three trends that stood out the most:

🔑 First-Time Buyers Are Getting Creative

First-time buyers made up 12% of all mortgage transactions in 2025 – up from 10% in 2024 – despite higher home prices and interest rates. What’s fueling this resurgence? Creativity and support.

Over half of first-time buyers bought with someone other than a spouse – think friends, siblings, or parents. And 41% received financial gifts to help with the down payment, with the average gift hitting $74,000 nationwide – and an eye-popping $150,000 in Ontario and B.C. Family support and co-ownership are clearly reshaping the entry-level market.

💳 Financial Strain Is Rising

Affordability remains a challenge. A whopping 65% of first-time buyers maxed out their budgets, and more are relying on credit to deal with unexpected expenses. In fact, the percentage of first-time buyers using savings for unforeseen costs dropped from 78% to just 50% in one year.

Worryingly, many buyers are now using one credit facility to service another – a sign of household cash flow stress. Yet, in the same breath, a surprising 26% of mortgage renewers are paying down their mortgages faster. It’s a tale of two markets: one group stretched thin, the other deleveraging.

🏠 Secondary Suites Are Going Mainstream

One in five buyers said the main reason they purchased was to get a home with a secondary suite – and 28% of homeowners already have one. Another 10% are planning to add one. Whether for extra income or multi-generational living, suites are no longer an investor-only play. Owner-occupiers are turning into landlords at scale.

What does this mean for investors? More competition on both the purchase and rental side – but also more acceptance, more zoning-friendly policies, and more resale value for properties with income potential.

💡 Key Takeaways for Investors:

• Expect increasing competition in the entry-level market, but not really anywhere else.

• Consider flipping or holding properties with income suites – buyers are actively seeking them.

• Monitor for potential distress sales as household debt levels remain high.

Listen to the full breakdown on The Canadian Real Estate Investor Podcast, or join our investor community at realist.ca.