The dream of homeownership in Canada is increasingly becoming dependent on financial support from family members, according to a revealing new survey by Royal LePage. As housing affordability reaches crisis levels across the country, nearly 60 percent of prospective homebuyers now consider assistance with their down payment not just helpful, but essential to enter the housing market.
The nationwide survey, which captured responses from potential homebuyers across major urban centers, paints a sobering picture of Canada’s housing accessibility challenges. For first-time buyers particularly, the findings reveal that accumulating sufficient funds for a down payment represents the single most significant barrier to homeownership, outranking concerns about mortgage qualification or monthly payment affordability.
“What we’re witnessing is a fundamental shift in how Canadians approach homebuying,” explains Karen Yolevski, Chief Operating Officer at Royal LePage. “A generation ago, saving for a down payment was challenging but achievable through disciplined financial planning. Today, with the median home price having increased nearly 150 percent in many urban markets over the past decade, that path has become virtually impossible for many working Canadians without external support.”
The survey indicates that family members—primarily parents and grandparents—have become critical players in the homebuying process. In Vancouver and Toronto, where average home prices consistently rank among North America’s highest, the percentage of buyers requiring down payment assistance jumps to nearly 70 percent. This financial reality is creating what economists describe as a “generational wealth transfer” happening earlier in life than previously observed.
“We’re seeing parents liquidating investments or refinancing their own homes to help their adult children enter the market,” notes Benjamin Tal, Deputy Chief Economist at CIBC Capital Markets. “This creates a concerning dynamic where homeownership is increasingly becoming a privilege determined by family wealth rather than individual financial capacity.”
The ripple effects extend beyond individual families to impact broader economic patterns. The survey reveals that 42 percent of respondents have delayed major life decisions—including marriage, having children, or changing careers—specifically due to housing affordability challenges. This demographic shift carries significant implications for communities, consumer spending, and economic growth.
Government programs designed to assist first-time homebuyers, such as the First-Time Home Buyer Incentive and the Home Buyers’ Plan, were viewed favorably by survey respondents but widely considered insufficient given current market conditions. Nearly 75 percent indicated that more substantial policy interventions would be necessary to meaningfully address affordability challenges.
Regional variations emerged throughout the data. Atlantic Canada showed the lowest dependency on family assistance (44 percent), while British Columbia topped the list at 68 percent. Quebec and Alberta fell in the middle range, with 52 and 55 percent respectively reporting that financial help would be necessary for their home purchase.
The survey also revealed a generational divide in attitudes toward homebuying assistance. While 63 percent of millennials expressed comfort with receiving financial help from family, only 48 percent of Gen X respondents felt the same, suggesting different perspectives on financial independence across age groups.
Industry experts caution that this trend may further exacerbate wealth inequality in Canada. Families without accumulated home equity or liquid assets to share face increasingly limited options for helping their children enter the housing market, potentially leading to a more pronounced socioeconomic divide in homeownership rates.
As policymakers and industry stakeholders digest these findings, the fundamental question remains: has homeownership in Canada transformed from an achievable milestone based on individual effort to a privilege increasingly determined by family financial capacity? And if so, what does this mean for the future of Canadian communities and the long-held ideal of homeownership as a cornerstone of middle-class financial security?
