CMHC Survey Canadian Homebuyers Stretch Budgets Amid Rising Financial Strain
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The Canada Mortgage and Housing Corporation's (CMHC) 2025 Mortgage Consumer Survey reveals that nearly 60% of Canadian homebuyers are purchasing homes at the maximum price they can afford, a significant increase from 46% in both 2023 and 2024. This trend is particularly pronounced among first-time buyers, with 65% reaching their financial limits. These buyers, primarily aged 25 to 34 and earning between $60,000 and $105,000 annually, now constitute 12% of mortgage transactions, up from 10% the previous year. Regionally, British Columbia and Ontario lead, with 66% and 64% of buyers, respectively, paying the maximum they can afford. In contrast, only 40% of repeat buyers, who generally have higher incomes, reported doing the same .
Financial strain is evident, as 51% of mortgagers reported difficulties in making debt payments, an increase from 42% in 2024. First-time buyers are disproportionately affected, with 60% struggling, compared to 29% of repeat buyers. Concerns about mortgage default have also risen slightly, with 53% of respondents expressing worry, up from 50% the previous year. Despite these challenges, optimism persists: 74% of homebuyers believe their property's value will increase in the next year, and 73% feel comfortable with their mortgage debt .
The survey highlights a growing interest in energy efficiency and home renovations. The proportion of buyers prioritizing energy-efficient homes rose from 57% to 61%, and 55% of homeowners have undertaken renovations in the past three years. Additionally, there's an increasing trend toward constructing secondary suites, with 10% of mortgagers expressing interest. In terms of mortgage preferences, fixed-rate mortgages remain predominant, though their popularity has declined by 7% from 2024. Conversely, variable-rate mortgages have gained traction, increasing from 23% to 25%, particularly among refinancers, 31% of whom opted for variable rates.
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