Mortgage experts say financial prep, not just saving, sets renters up for success
A survey by Abacus Data in partnership with the Canadian Real Estate Association (CREA) has revealed the depth of anxiety gripping Canadians over the state of housing, with nearly nine in ten respondents expressing concern about affordability and security in the current market.
While the rising cost of living remains the top community concern (59%), housing (38%) now surpasses even healthcare (30%) in the national psyche.
This anxiety is one reason why more Canadian renters are approaching homeownership with extra caution.
Licensed mortgage broker and LowestRates.ca expert Leah Zlatkin said she has seen a shift in mindset among prospective buyers, with more clients scrutinizing their finances and mapping out long-term goals before making the leap from renting to owning.
“Renters often think the only hurdle to homeownership is saving enough for a down payment, but that’s just one piece of the puzzle,” Zlatkin said.
“Building a strong credit history, managing debt, and understanding all the costs of buying a home are just as important. The earlier renters start preparing, the more options they’ll have when it’s time to get approved for a mortgage.”
Zlatkin pointed out that while a down payment is a major milestone, first-time buyers frequently underestimate the additional upfront costs.
“Closing costs typically range from 1.5–4% of the home’s purchase price and include expenses such as legal fees, land-transfer taxes, and title insurance,” she said.
“Setting aside funds for moving and an emergency buffer ensures new homeowners aren’t left financially stretched.”
Credit and debt management remain central to mortgage readiness. “Lenders rely heavily on credit scores to determine eligibility and rates,” Zlatkin said.
She advised renters to keep credit card balances below 30% of their limit, pay bills on time, and avoid new credit applications in the year before applying for a mortgage.
RE/MAX Canada’s Kingsley Ma said first-time buyers are finding rare opportunities as prices ease and competition wanes. He noted that with rates likely to edge lower, Canadians ready to buy shouldn’t wait for a market freefall that’s unlikely to come.https://t.co/TBh70Tohcq
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 21, 2025
Affordability challenges and higher interest rates are prompting more Canadians to delay homeownership or seek alternative paths, such as co-ownership or moving to less expensive regions.
First-time buyers are also increasingly relying on family support or government programs to bridge the gap.
“A steady income reassures lenders, while paying down high-interest debt improves the debt-to-income ratio, one of the main factors in mortgage approval,” she added.
Setting realistic timelines and savings goals is another key step.
“Buying a home rarely happens overnight,” Zlatkin said.
“Renters should map out how long it will take to save for both their down payment and closing costs, and track progress monthly. Setting clear milestones, such as saving a set amount per paycheck or reaching a credit-score target, keeps the goal achievable.”
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