As the Canadian dream of homeownership becomes increasingly elusive, nearly half of homeowners (43 per cent) say they couldn’t have purchased their first home without financial help from family, according to a new BMO survey.
The findings highlight a growing reliance on the so-called “Bank of Mom and Dad,” with 27 per cent of Canadians expecting support from parents or grandparents. Among those anticipating assistance, 6 per cent say they’ll need help with a down payment, 8 per cent expect support covering monthly rent, and 7 per cent are counting on financial backing for home renovations. On the flip side, nearly four in ten (39 per cent) plan to provide financial help for their own children or grandchildren.
Waiting for rates—and confidence—to improve
The report, released Monday, reveals that 67 per cent of homebuyers are holding off on purchasing a home until interest rates come down—a slight dip from 72 per cent in 2024. Many are eyeing a target of three per cent or lower before making their move. But the real obstacle may be something harder to quantify: confidence.
Concerns about a looming economic recession jumped sharply, from 60 per cent in March to 74 per cent in April 2025. That anxiety is reflected in consumer sentiment, with more Canadians saying they’ve lost motivation to buy. In B.C. and Southern Ontario, where prices and sales have softened, the uncertainty is especially pronounced.
“Canada’s housing market remained under pressure heading into the spring, with sales and prices both weakening further,” says Robert Kavcic, senior economist at BMO Capital Markets. “There is some clear underlying weakness as inventory builds and investors remain absent. Suffice it to say, homebuyers are losing confidence and motivation…”
A generation feeling left behind
For many younger Canadians, the dream of homeownership feels increasingly out of reach. While 59 per cent still say it’s one of their greatest life aspirations, 50 per cent believe it’s less attainable than it was a year ago. Two-thirds (66 per cent) say they’re less confident they’ll ever own a home compared to five years ago.
Millennials, in particular, feel like they’ve missed their moment—66 per cent say the opportunity to buy has passed them by.
Amid this uncertainty, demand has been deferred. Of the 38 per cent of Canadians who plan to buy a home in the near future, just 14 per cent plan to do so this year. Nearly a quarter are putting off the purchase until 2026 or later.
Shared homes and rethinking renting
As affordability challenges persist, many Canadians are reimagining the path to homeownership. Shared homeownership is gaining traction — 45 per cent of Canadians say they would consider buying a property with friends, family members or non-romantic partners. That number climbs to 63 per cent among Gen Z and 50 per cent among Millennials.
Renting is also becoming a more acceptable long-term option. Six in 10 Canadians say they’re content with renting and don’t feel pressured to buy, with sentiment highest among Boomers (83 per cent) and Gen X (61 per cent). Over half believe renting offers more flexibility.
“While homeownership continues to represent financial progress for many, we are finding Canadians are beginning to explore new and different pathways to meet their goals as economic uncertainty grows and priorities shift,” said Gayle Ramsay, head, Everyday Banking Segment & Customer Growth at BMO.
Financial confidence vs. financial anxiety
Despite the gloomy market sentiment, Canadians remain somewhat optimistic about their personal finances—70 per cent feel confident in their current financial situation. But that confidence is tempered by anxiety. Top concerns include unexpected expenses (82 per cent), the overall financial picture (81 per cent), and housing costs (72 per cent).
With so many homebuyers relying on parents and family for downpayment or monthly support, perhaps the government should consider education and tax incentives to help facilitate this transfer of wealth. According to studies, the average age of generational wealth transfer is 68. That’s the age of the recipient, not the older generation. Most people don’t need that money then, but sure could use it in their 30s and 40s. It makes more sense to transfer some of our wealth when it will benefit the next generation more effectively. Buying a first or second home (for grandkids) is an ideal reason to give them some money now. Education and incentives could get more people into the market and help them realize their dream of home ownership. This, along with supply innovations and government involvement, might help tip the scale of home affordability.
I like what you said. I have the philosophy that I would rather give with “warm” hands than with “cold” hands. If you know what I mean.
Sorry, but the larger issue is the lack of wealth in this country. Wages have not kept up with inflation for many jobs out there. And, building wealth for many of the younger generations is next to impossible – give the higher costs of rent. Facts are, if you come from a home with wealth to transfer you already are ahead of the game. The rest of us, who come from low-wage earning parents, those who cannot invest, save or trade to build wealth, have nothing to get transferred to buy a home. Facts are that Canada is no longer the space to own a home. In fact home ownership might soon be a negative – with climate challenges, and job migrations, being mobile to relocate with ease is starting to appear more desirable. While many would love to own a home, more and more of us, will never step onto that ladder. What the government should do, is stop funding the well off through taxing the rest of us, to give incentives and breaks to richer Canadians. They need to get back to the business of supporting rental homes. Build more apartment buildings in high demand areas to drive down costs. We need to help more people get into sheltered spaces, not focus on helping trust fund babies get their spoils and more – at any age. And the fact that you think a 68 year old+ doesn’t need wealth illustrates you have no idea the high costs of seniors housing and care. Even government supported homes can run a person 3000/month. Again, yes, housing is slipping (slipped) past many younger generations. But the issue was allowing speculation, seeing a home as a retirement nest egg. Housing became a commodity to trade… until it is no longer used as an asset to build wealth, will it ever become affordable again for the masses. For now, Canada and Canadians must accept owning a home is for the well healed rich, and those among us who can get a mortgage with a reasonable downpayment.