Home purchasing and mortgages in Canada are moulded by diverse generational and demographic trends. Younger generations like Gen Z (83%) and Millennials (73%) display strong optimism about homeownership, despite affordability being a major concern. They are reliant on family support as well as government incentives, emphasizing the need for tailored education and first-time buyer programs and initiatives.
New Canadians, a growing demographic increasing due to Canada’s target to welcome 395,000 permanent residents in 2025, exhibit unique attitudes and behaviours. They are more likely to rely on personal networks and community referrals during the buying process, often prioritizing family-oriented living. Financial institutions (FIs) that offer culturally sensitive services, multilingual support, and tailored mortgage solutions can gain trust and foster long-term relationships with these new Canadians.
Affordability remains the greatest challenge across demographics, with 71% of Canadians worried about rising rates and over half spending more than a third of their income on mortgage payments. This presents a significant opportunity for FIs to advertise competitive rates, promote first-time buyer incentives and saving accounts, and introduce flexible mortgage products. By addressing diverse needs and offering accessible financial solutions, FIs can empower Canadians to achieve homeownership while navigating economic pressures like inflation, global politics and rising costs of living.
This report looks at the following areas:
- Decision-making dynamics in the home purchasing process
- Preferred sources of advice for home financing decisions
- Motivations driving home purchases across demographics
- Methods of finding mortgage lenders and their effectiveness
- Down payment trends and financial preparedness of buyers
- Housing preferences and types of homes considered by buyers
- Consumer attitudes and concerns about homeownership
Affordability challenges and shifting priorities are redefining Canada’s home buying landscape. Younger generations are eager to enter the market but face financial barriers. Meanwhile, seasoned buyers focus on professional advice, highlighting a growing need for innovative, tailored solutions to support diverse consumer journeys.
Radha Paleja, Senior Analyst, Financial Services
Market Definitions
For the purposes of this Report, Mintel has used the following definitions:
“New Canadians” refers to adults that have become Canadian in the past 10 years.
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EXECUTIVE SUMMARY
- What you need to know
- Market predictions
- What consumers want & why
- Opportunities
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THE MARKET
- Market context
- Rate reductions to help rebound home sales and housing shifts
- Market drivers
- Immigration fuelling housing demand
- Graph 1: immigration levels plan, by type of temporary resident, 2024
- Build Canada Homes incentive
- Interest rate cuts and mortgage changes are making room for new home buyers
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CONSUMER INSIGHTS
- Consumer fast facts
- Home purchasing timeframe
- More than half of Canadians plan to buy a home
- Gen Zs are excited about homeownership
- Graph 2: home purchasing timeframe, by generation, 2025
- Women are less optimistic about homeownership
- Graph 3: home purchasing timeframe, by gender, 2025
- Black and South Asian consumers are most interested in buying a home in the next five years
- Graph 4: home purchasing timeframe, by race or ethnicity, 2025
- First time purchasing a home
- Most homebuyers are entering the market for the first time – making for an exciting and daunting experience
- Graph 5: first time home buyers, 2025
- Delayed milestones in affordability for younger Canadians
- Graph 6: first time home buyers, by generation, 2025
- Involvement in primary home purchasing process
- Home purchases are a shared decision for half of Canadians
- Graph 7: involvement in the purchasing process, 2025
- Men are slightly more likely than women to make home purchase decisions independently
- Graph 8: involvement in the purchasing process, by gender, 2025
- Home purchasing is a shared decision for many consumers not born in Canada
- Graph 9: involvement in the purchasing process, by Canadian status, 2025
- Sources used for home financing advice
- Empower homebuyers with expert advice and personal support
- Graph 10: sources used for home financing advice, 2025
- Family is an important source of advice for younger Canadians
- Graph 11: sources used for home financing advice, by generation – select sources, 2025
- Multilingual resources and inclusive campaigns can help connect with and educate New Canadians
- Graph 12: sources used for home financing advice, by Canadian status, 2025
- Motivations for home purchase
- Homeownership is a goal for Canadians
- Graph 13: motivations for home purchase, 2025
- New Canadians are thinking about their family
- Graph 14: motivations for home purchase, by Canadian status, 2025
- How Canadians found their lenders
- Homebuyers are likely to turn to trusted financial partners for mortgages
- Graph 15: how Canadians found their lenders, 2025
- Boomers utilize banks where Gen Z use referrals
- Graph 16: top reasons how Canadians found their lenders, by generation, 2025
- New Canadians are learning the ropes, relying on referrals
- Graph 17: top reasons how Canadians found their lenders, by Canadian status, 2025
- Down payment plans for next home
- Tailored mortgage products needed for diverse down payment ranges
- Graph 18: down payment plans for next home, by all and generation, 2025
- Black and South Asian consumers likely to put down less
- Graph 19: down payment plans for next home, by race and ethnicity, 2025
- Exploring Canadians’ housing choices
- While single-family homes remain the top choice, many consumers are open to other options
- Graph 20: type of home consumer would consider purchasing, 2025
- Boomers are most likely to want traditional, while younger generations are more open to alternative options
- Graph 21: type of home consumer would consider purchasing, by generation, 2025
- Attitudes toward buying a home
- Canadians take calculated risks and evaluate options carefully
- Graph 22: attitudes toward buying a home – financial concerns and preferences, by generation, 2025
- Rising unease will drive consumers to rethink their buying strategies
- Younger generations worried about housing market, many needing help to get started
- Graph 23: attitudes toward buying a home – homeownership challenges and support, by generation, 2025
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INNOVATION AND MARKETING STRATEGIES
- Marketing and advertising
- Simplifying mortgages: delivering the best rates and valuable rewards
- Lenders support unique financial journeys
- Specialists at hand for personalized advice
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APPENDIX
- Market definition
- Consumer research methodology
- Consumer research questions
- Generations
- Abbreviations and terms
- Building assets in home ownership improves financial situation
- Graph 24: when buying primary home, was it first time purchasing property, by all and financial status, 2025
- Canadians have differing patterns of residential change
- Graph 25: when consumer moved into current home, by all and generation, 2025
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