Can’t Buy Alone: Why Today’s Homebuyers Are Leaning on Family to Enter the Market
In today’s Canadian housing market, the dream of homeownership remains alive—but for a growing number of first-time buyers, that dream is only possible with a family safety net.
According to the 2025 CMHC Mortgage Consumer Survey, more Canadians are entering the market for the first time, but they’re not doing it alone. From gifted down payments to co-signers and inheritances, family support has become an essential part of the home buying equation.
The Rise of the Financial Assist
One of the survey’s most striking findings is the surge in gifted money and inheritance. This year, 41% of first-time buyers received financial support from family—up significantly from 30% the year before. The average gift? Nearly $80,000.
And this trend isn’t limited to new entrants. One in five repeat buyers also relied on a financial gift or inheritance, averaging over $103,000.
Co-Signing: The New Norm
Beyond financial gifts, co-signing has quietly become a cornerstone of first-time buying strategies. CMHC data shows that more than half of new buyers purchased with someone other than a spouse or partner, often a parent stepping in as a co-signer.
With stringent mortgage stress test requirements and higher borrowing costs, qualifying for a mortgage solo has become a steep climb—especially for younger buyers early in their careers.
Regulatory Tailwinds, Real Costs
Recent federal rule changes, such as the return of 30-year insured amortizations for first-time buyers, have provided some relief. Combined with marginally lower home prices and softening interest rates, more Canadians are now entering the market with a sense of readiness.
In fact, CMHC found that buyers are entering the market faster, taking just 3.4 years to save for a down payment compared to 4.2 years last year.
But while these trends are promising, the reality is that many buyers are achieving readiness only through external help. Family support is masking what would otherwise be an affordability crisis for much of the entry-level market.
The Risks and Realities of Family-Backed Buying
For parents and children alike, these arrangements carry significant implications. A co-signer assumes full legal responsibility for the mortgage if the buyer defaults. And large gifts can have future tax and estate planning consequences if not documented properly.
There are also emotional considerations. Mixing family dynamics with major financial commitments can strain relationships, especially if expectations aren’t clearly set.
Experts advise both buyers and supporters to treat the process professionally. That means getting legal advice, clearly defining roles, and understanding the financial impact of each contribution.
A Symptom, Not a Solution
At its core, the growing dependence on family support is a symptom of broader affordability issues. Wages haven’t kept pace with housing prices, and many young Canadians are feeling locked out of homeownership without parental help.
As the market continues to evolve, the conversation is shifting from “Can I afford a home?” to “Who can help me afford one?”
Final Word
Homeownership remains a central goal for Canadians—but in 2025, it’s increasingly a team effort. Whether through co-signing or gifting, families are playing a crucial role in bridging the affordability gap.
That’s not necessarily a bad thing—but it raises important questions about wealth inequality, generational opportunity, and long-term financial planning.
If you’re entering the market soon, know this: the path to homeownership may be harder—but you don’t have to walk it alone.
In today’s Canadian housing market, the dream of homeownership remains alive—but for a growing number of first-time buyers, that dream is only possible with a family safety net.
According to the 2025 CMHC Mortgage Consumer Survey, more Canadians are entering the market for the first time, but they’re not doing it alone. From gifted down payments to co-signers and inheritances, family support has become an essential part of the home buying equation.
The Rise of the Financial Assist
One of the survey’s most striking findings is the surge in gifted money and inheritance. This year, 41% of first-time buyers received financial support from family—up significantly from 30% the year before. The average gift? Nearly $80,000.
And this trend isn’t limited to new entrants. One in five repeat buyers also relied on a financial gift or inheritance, averaging over $103,000.
Co-Signing: The New Norm
Beyond financial gifts, co-signing has quietly become a cornerstone of first-time buying strategies. CMHC data shows that more than half of new buyers purchased with someone other than a spouse or partner, often a parent stepping in as a co-signer.
With stringent mortgage stress test requirements and higher borrowing costs, qualifying for a mortgage solo has become a steep climb—especially for younger buyers early in their careers.
Regulatory Tailwinds, Real Costs
Recent federal rule changes, such as the return of 30-year insured amortizations for first-time buyers, have provided some relief. Combined with marginally lower home prices and softening interest rates, more Canadians are now entering the market with a sense of readiness.
In fact, CMHC found that buyers are entering the market faster, taking just 3.4 years to save for a down payment compared to 4.2 years last year.
But while these trends are promising, the reality is that many buyers are achieving readiness only through external help. Family support is masking what would otherwise be an affordability crisis for much of the entry-level market.
The Risks and Realities of Family-Backed Buying
For parents and children alike, these arrangements carry significant implications. A co-signer assumes full legal responsibility for the mortgage if the buyer defaults. And large gifts can have future tax and estate planning consequences if not documented properly.
There are also emotional considerations. Mixing family dynamics with major financial commitments can strain relationships, especially if expectations aren’t clearly set.
Experts advise both buyers and supporters to treat the process professionally. That means getting legal advice, clearly defining roles, and understanding the financial impact of each contribution.
A Symptom, Not a Solution
At its core, the growing dependence on family support is a symptom of broader affordability issues. Wages haven’t kept pace with housing prices, and many young Canadians are feeling locked out of homeownership without parental help.
As the market continues to evolve, the conversation is shifting from “Can I afford a home?” to “Who can help me afford one?”
Final Word
Homeownership remains a central goal for Canadians—but in 2025, it’s increasingly a team effort. Whether through co-signing or gifting, families are playing a crucial role in bridging the affordability gap.
That’s not necessarily a bad thing—but it raises important questions about wealth inequality, generational opportunity, and long-term financial planning.
If you’re entering the market soon, know this: the path to homeownership may be harder—but you don’t have to walk it alone.
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