Executives share insights into helping new buyers navigate a demanding and often frustrating market
Home prices may be on the way down in many Canadian markets with mortgage rates also sliding, but first-time buyers across the country are continuing to face plenty of hurdles.
Bidding wars and soaring prices are a thing of the past across some major cities, but Ratehub.ca’s latest research signalled that things aren’t getting any easier for first-time buyers when it comes to housing affordability.
In seven major markets – St. John’s, Fredericton, Edmonton, Halifax, Ottawa, Regina, and Winnipeg – affordability worsened in August, the company said.
Montreal and Calgary saw no change, and while the outlook improved marginally for buyers in Toronto, Hamilton, Vancouver, and Victoria, six-figure incomes are still required in each of those markets to buy an average home. In Toronto and Vancouver, income requirements top $200,000.
Last week’s Canadian Mortgage Summit in Brampton saw prominent industry members convene for a panel addressing some of those hurdles and how brokers can help their first-time buyers get a foot on the housing ladder.
Unsurprisingly, eyewatering housing costs are the main impediment to buyers who can’t rely on the sale of an existing home to fund part of their purchase, according to Natasha Taylor (pictured, top middle), business development manager at Lendfinity.
“It’s no secret that the cost of living has skyrocketed,” she said. “All it does is pose additional challenges and makes it a little harder for our first-timers to save up that downpayment.”
In the past, buyers might have been able to rely on the Bank of Mom and Dad – financial assistance from their parents or other relatives. But that’s no longer an appealing option for many, particularly since the end of the COVID-19 pandemic when interest rates began to surge.
Even first-time buyers with strong borrowing profiles, Taylor highlighted, have been left stranded in the current market. “There’s still the challenge that comes with saving up that downpayment,” she said.
“I’m referring to your clients who would still otherwise be considered Triple-A clients. They make good income and are a dual-income household. But things are just so expensive right now.”
Bank of Canada’s 25 bps rate cut is a modest boost for homebuyers—fixed and variable mortgage costs are easing, and bond yields are at multi-month lows.https://t.co/radIeSOzJg
— Canadian Mortgage Professional Magazine (@CMPmagazine) September 22, 2025
For plenty of first-time buyers, viable solutions to the affordability crisis might seem thin on the ground. But there are options out there, said Marianne Taggio (pictured, top left), chief operating officer at Requity Homes.
“I think what we need to do is look for more innovative ways of getting Canadians into homes and off the sidelines,” she said. She highlighted rent-to-own – Requity’s speciality – as an option when GDS/TDS is maxed out and gifting or co-borrowing are off the table.
Too many borrowers who don’t own a home are being turned away during the mortgage application process, Taggio said, with some of rent-to-own’s main demographics including generations from X to Z and business-for-self individuals who’ve been self-employed for two years or under and don’t have the requisite income statements for a standard application.
“Right now, [lenders] are saying no to them,” she said, “and when we say no, we shatter dreams and they’re left on the sidelines forever. Our job as professionals is to get them off those sidelines and into a market.
“I’m not saying that rent-to-own is the silver bullet but it’s just one additional tool that we need to be talking about around the table.”
Working with borrowers even when they’re not ready to buy yet
Taylor said one of the most important steps a broker can take with first-time buyers is focus on the preapproval conversation as early as possible in their mortgage journey – even if they’re not currently in a position to buy.
“They could still be a year or two out, but that’s a year or two of conversations that you could be having with them and a lot can change in that timeframe as well,” she pointed out.
“Get them ready. Keep them organized. Get those documents in order. We all know how much of a headache that can be, but do yourself and the client a favour by having those discussions very early on.”
Brokers should also keep in touch with those clients and let them know what’s happening in the market, she said, even if it’s equally important not to overwhelm them with information.
“It’s our job as brokers and lenders to simplify that process as much as possible and to bring that clarity for them,” she said, “getting them ready so that when there is an opportunity for them to strike, they’re able to do so effectively. And it makes everybody’s lives a lot easier and makes the process enjoyable again.”
Broker-lender relationships crucial for first-time buyers
A glimmer of light for first-time buyers, according to Alfonso Casciato (pictured, top right), EVP of strategic initiatives at Radius Financial, has been a recent increase in the mortgage insurability limit to $1.5 million from the previous cap of $1 million.
That gives borrowers more wiggle room – but for brokers, Casciato also highlighted how strong relationships with lenders can improve chances of getting deals over the line.
“What doesn’t get talked about enough is that you need to spend time creating relationships with your lenders,” he said. “Let’s not forget while all these opportunities are available for first-time homebuyers, programs are changing – enhancing opportunities. I think as brokers you really need to spend some time on creating a very positive relationship with your lenders. It goes a long way.”
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