Canada Home Purchasing and Mortgages Market Report 2025
Home purchasing and mortgages in Canada are moulded by diverse generational and demographic trends.
Home purchasing and mortgages in Canada are moulded by diverse generational and demographic trends.
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.
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
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.