Canadian First-Time Home Buyers Rely On Non-Mortgage Debt & Gifts

Canadian first-time home buyers are increasingly turning to sources beyond traditional mortgages to finance their home purchases. More buyers are borrowing through credit cards or personal lines of credit to pay for unexpected fees like inspections, legal costs, or small repairs. Only half of recent first-time buyers could cover these surprise costs on their own, down sharply from 78% just a year earlier.

Meanwhile, the use of family “gifts” for down payments is rising too. About 41% of first-time buyers in 2025 received financial help from relatives to put toward their down payment, up from 33% in 2023 and just 14% in 2018. These gifted funds are often essential to close deals in today’s costly housing market.

Many first-timers are also sharing ownership of their homes with others who do not live there. In 2025, 54% of first-time buyers co-owned with non-occupants like parents, siblings, or private investors. That is a major jump from 12% just a year before. This trend helps with affordability but also means more buyers are entering the market only with shared help.

These non-mortgage funding methods — debt, gifts, and co-ownership — make entering the housing market possible for more people. But they also point to growing financial risk. Borrowing on credit cards or lines of credit adds future payments and interest. Relying on gifted money or shared title ties home ownership to someone else’s wealth, not just the buyer’s income.

Experts say these shifts reveal a widening gap in access to home ownership. Many younger Canadians simply can’t qualify on their income alone. Instead, they rely on inherited wealth or family support. That creates a system where home ownership increasingly depends on family wealth rather than personal savings or earnings.

This trend points to a housing market where first-time buyers feel stretched thin. Governments, lenders, and families are adapting—but these shifts may also boost entry-level home prices even higher. The long-term effect: more wealth gap and more financial fragility, especially among young Canadians who lack strong family support.