2025 Canadian Home Buyer Report

Mounting debt pressures, the suffocating cost of living and unprecedented economic tensions with the United States have already made 2025 a bruising year for Canadian consumers.

But their desire to buy a home remains undaunted. It’s a testament to Canadian optimism, or perhaps an indication that homeownership is how many expect to carve out financial stability for themselves in an uncertain world.

About half (54%) of Canadians say they plan to buy a home in the next five years, according to a new NerdWallet study conducted online by The Harris Poll among 1,018 Canadian adults from February 19-21. That’s up slightly from 49% a year ago.

Obstacles loom for many of these prospective home buyers, whether buying a first home or preparing for their next purchase. A lack of available homes within their budget or desired living area is a challenge to pursuing homeownership or purchasing a new home at this time for 25% of Canadians, the cost of living (30%), insufficient down payment savings (19%), and the current economic climate (12%) were also cited as reasons.

These obstacles will likely play a role in determining who becomes a homeowner in the coming years.

Buying a home could also be made more difficult by the emotions involved, as well as a lack of mortgage literacy. More than 3 in 5 (61%) Canadians feel there is too much pressure to own a home in Canada. Thirty-eight percent say they do not know how to compare mortgage offers from different lenders.

Key findings

Many buyers hitting “pause”

Over half of Canadians (54%) say they plan to buy a home in the next five years. Despite the current economic climate, 12% of Canadians say they plan to buy a home in the next 12 months.

Some Canadians appear willing to wait longer. Fourteen percent say they plan to buy a home between more than one year to two years from now, while the same proportion (14%) say they plan to buy a home between more than four years to five years from now.

Home buying intent is strong across most age cohorts. Almost three-quarters (74%) of Canadians aged 18-34 and 35-44, as well as 60% of those aged 45-54 and 32% of those aged 55-plus say they plan to buy a home in the next five years.

Similar percentages of Canadians aged 18-34 (34%), 35-44 (35%) and 45-54 (32%) say they plan to buy a home in the next two years, while just 15% of those aged 55-plus say the same. These groups diverge further when their home buying window is extended. Twenty-three percent of Canadians aged 18-34 and 18% of those aged 45-54 say they plan to buy a home between four and five years from now versus 8% of those aged 55-plus.

Down payment savings: Concerning, but many have a plan

Almost 4 in 5 (79%) Canadians who plan to buy a home in the next five years say they plan to use a down payment. But only 62% of potential buyers have actually started saving for one.

Cobbling together enough for a down payment in just five years is a tall order. The average price of homes sold in January 2025, for example, was $670,064, according to the Canadian Real Estate Association. The minimum down payment for a home of that price is $42,006.

Considering the economic challenges they’re facing, it’s not surprising that many Canadians are currently far short of that amount. Of those who plan to buy a home in the next five years 26% have less than $25,000 saved for a down payment.

Some, however, are in a more advantageous position. Ten percent of Canadians who plan to buy a home in the next five years have between $50,000 and $99,999 saved for a down payment, while 7% have saved between $100,000 and $199,999. Eleven percent say they have saved $200,000 or more for a down payment.

Of Canadians who plan to buy a home in the next five years, 74% say they have a strategy for growing their down payment. Twenty-six percent invest in a tax-free savings account and plan to use their earning for a down payment, 25% save what they can each month in a savings account and 21% plan to use the equity from a home they currently own to help grow their down payment.

Obstacles mount for non-homeowners

Almost 7 in 10 (69%) Canadians say something is preventing them from either pursuing homeownership or purchasing a new home at this time. But the obstacles faced by non-homeowners and those who currently own a home tend to differ in type and magnitude.

Eighty-seven percent of non-homeowners say something is preventing them from pursuing homeownership at this time. Their most common obstacles include the cost of living having become too high (38%), low income (35%) and not having enough money saved for a down payment (35%).

Sixty-one percent of homeowners say something is preventing them from buying a new home at this time. While the high cost of living is also their most common obstacle (26%), other roadblocks are generally market-related, not financial: 22% cite a lack of available homes within their budget or desired living area, 17% say mortgage interest rates are too high and 15% say the housing market in their area is too competitive.

While some homeowners cite low income (13%) and not having enough money for a down payment (12%) as obstacles, they did so far less frequently than non-homeowners.

Canadians are conflicted about home buying

Canadians are pulled in two directions where homeownership is concerned. Many see the long-term value of owning a home, but achieving that goal is leading some to feel pressure and, in many cases, hopelessness.

Seventy-four percent of Canadians agree that buying a home is a smart investment regardless of the economic climate, while 70% agree that homeownership is part of their plan to afford retirement.

With so much emphasis on homeownership as a means of generating wealth and stability, it’s hardly surprising that 61% of Canadians agree that there is too much pressure to own a home in Canada.

That pressure has possibly led to a certain amount of pessimism. Forty-six percent of Canadians feel worse about their ability to buy a home this year compared to last year. And more than half of non-homeowners (55%) say they’ll never be able to afford to buy a home.

Complicating the issue for many is a possibly naive approach to the realities of home buying. Half of Canadians (50%) say they want to buy a new home but don’t want to sacrifice their current lifestyle to buy one.

Lack of mortgage literacy is costing Canadians money

Canadians are well-informed where some mortgage concepts are concerned. Most (92%) believe closing costs should be considered when budgeting for a home, while 85% are aware that Canada has minimum down payment requirements for home purchases.

But there are areas where a lack of knowledge could be costing them money.

For example, 55% of Canadians incorrectly said that “You must pay to use a mortgage broker.” (Mortgage brokers are paid by the lender, not the borrower.) Thirty-eight percent said they don’t know how to compare mortgage offers from different lenders, a shortcoming that could prevent them from seeking out a lower rate or negotiating a better one.

The understanding of other mortgage concepts is somewhat murky. Seven in 10 (70%) Canadians incorrectly said a mortgage pre-approval is required to buy a home. While getting a pre-approval is highly recommended before making an offer on a home, it isn’t technically required.

Fifty-five percent of Canadians said buying mortgage default insurance is mandatory when purchasing a home. But mortgage default insurance is only required if a buyer’s down payment is worth less than 20% of the purchase price.