Generation Z has built a reputation as careful researchers. Before committing to a purchase, whether it is a phone, a pair of shoes, or a streaming subscription, they tend to compare options, read the reviews, and ask the right questions. Homebuying is no different, especially when buying a first home is one of the most significant financial decisions a person will ever make.

Homeownership remains a goal for most Gen Z Canadians. A 2024 survey found that over 80% of young adults still see owning a home as part of their long-term plan. But wanting a home and actually getting there are two very different things. A challenging economy, a competitive housing market, and the reality of not knowing where to begin have made the path to ownership feel longer and more complicated than it was for previous generations.

That said, with the right plan, first-time buyers today have access to more tools, more information, and more support than any generation before them. This guide walks through the three key stages every first-time buyer needs to understand: saving, searching, and buying.

Homeownership in 2026: What Gen Z Buyers Are Facing

Why Buying Your First Home Feels Different Today

There is a reason first-time buyers feel like they are working harder to reach the same finish line as their parents or older siblings. In many ways, they are.

Home prices in Canada have increased significantly over the past two decades. While prices vary widely by city and region, the overall cost of entry into the housing market has grown much faster than average household incomes. The gap has pushed homeownership out of reach for many young buyers, at least temporarily, and has significantly reduced the share of first-time buyers in the market overall.

The average time to save a down payment in Canada was 3.4 years in 2025. That number assumes disciplined saving and a stable income, which is not always easy to maintain when rent, everyday expenses, and a higher cost of living are all competing for the same paycheque. Compared to the Millennial generation, who faced their own challenges when entering the market, Gen Z buyers are navigating these pressures in a housing environment that has become even more constrained.

None of this means homeownership is out of reach. It does mean the process requires more intentional planning than it once did.

The Good News for First-Time Buyers

The challenges are real, but so are the advantages that first-time buyers have today that previous generations did not.

Financial support is more common than many buyers realize. Approximately 41% of first-time buyers in Canada received a financial gift toward their down payment in 2025. For many families, helping a child or grandchild into homeownership has become a priority, and that kind of assistance can shorten the timeline to buying.

Access to information has also improved. Buyers can compare mortgage rates across lenders in minutes, research neighbourhoods through detailed online tools, and get answers to questions through broker websites, social media, and even AI. The knowledge that used to require a lot of legwork is now far more accessible.

More importantly, government programs specifically designed to help first-time buyers have grown and evolved. Between registered savings accounts, tax credits, and buyer incentive programs, there are real financial levers available to those who know how to use them.

Homeownership is still achievable. It just takes a clear strategy and a willingness to take the process one step at a time.

Creating a Plan for Success

The biggest mistake first-time buyers make is trying to time the market instead of building a plan. Waiting for the “perfect” moment to buy, when rates drop, when prices cool, when conditions shift, often means waiting indefinitely. What actually moves buyers forward is preparation.

Every buyer’s journey looks different. Some are saving aggressively for two years. Others receive family support and are ready sooner than they expected. Some are buying in a city centre. Others are looking further out and getting more space for their money. There is no single right approach, but there is a right order: saving, searching, and buying. Completing each stage thoughtfully sets the foundation for a smoother experience at the next one.

Working with knowledgeable professionals throughout this process, including a real estate agent who understands your local market, makes each step more manageable. Expert guidance saves time and helps buyers avoid costly mistakes.

Stage One: Saving for Your First Home

Understanding Your Homeownership Goals

Before a buyer looks at a single listing, they need to answer a more fundamental question: What am I actually working toward?

Many first-time buyers jump straight to scrolling real estate apps, fall in love with homes outside their budget, and end up feeling discouraged before they even begin. Getting realistic about your goals from the start changes that experience entirely.

Think about the type of home you actually want. A condo in the city? A townhouse near good schools? A detached home with a yard? Your answer should reflect your current life and where you realistically see yourself in five to ten years. Think about income, lifestyle, and how much space you actually need versus how much you think you want.

Set a realistic timeline. When do you hope to buy? If the answer is in two years, your savings strategy looks different than if you are targeting five years from now. A clear timeline gives your savings plan direction and keeps you accountable.

Building a Down Payment

The down payment is the largest single hurdle most first-time buyers face, and it tends to feel more manageable once you break it into steps.

In Canada, the minimum down payment depends on the purchase price of the home.

• For homes costing up to $500,000: The minimum down payment is 5% of the purchase price.
• For homes costing between $500,000 and $1,500,000: The minimum down payment is 5% on the first $500,000 and 10% on the portion above $500,000.
• For homes costing over $1,500,000: The minimum down payment is 20% of the purchase price.

Once you know your target, build a monthly savings plan that gets you there. Break the total down by month and treat it like a fixed expense. Automating contributions to a dedicated savings account removes the temptation to spend what you were planning to save.

At the same time, take a close look at your current spending. Identify two or three areas where you can realistically reduce costs and redirect that money toward your down payment. Small, consistent adjustments over time add up significantly.

Exploring First-Time Buyer Programs

One of the most important things first-time buyers can do is learn about the programs that exist specifically to support them. Many buyers leave money on the table simply because they are not aware of the options available.

The First Home Savings Account (FHSA) allows eligible Canadians to contribute up to $8,000 per year, to a lifetime maximum of $40,000, with contributions being tax-deductible and qualifying withdrawals being tax-free when used to buy a first home. It combines the benefits of an RRSP and a TFSA in a single account designed specifically for buyers.

The Home Buyers’ Plan (HBP) lets first-time buyers withdraw up to $60,000 from their RRSP to put toward a home purchase, with repayment spread over 15 years.

First-time buyers may also be eligible for the First-Time Home Buyers’ Tax Credit, which provides a non-refundable credit on the purchase of a qualifying home. In some provinces, land transfer tax rebates are available, further reducing the closing costs.

These programs are not complicated to access, but they do require some advance planning. Speaking with a financial advisor or mortgage broker early in the saving stage ensures you are using every available tool.

Strengthening Your Financial Health

Saving for a down payment is not the only financial preparation that matters. Lenders look at the full picture before approving a mortgage, and buyers who focus only on saving can be caught off guard when they realize other factors are working against them.

Your credit score affects the interest rate you are offered and whether your application is approved. A score above 680 is generally needed for the best mortgage options. If yours needs improvement, start early. Pay down existing debt, avoid opening new credit accounts, and make all payments on time.

Lenders also review your total debt levels in relation to your income, a calculation known as your debt service ratio. High monthly debt payments, including student loans, car payments, and credit card balances, reduce how much you can borrow for a home. Paying down debt during the saving stage improves your borrowing capacity when the time comes.

Income stability also plays a role. Lenders prefer to see consistent employment history, typically at least two years with the same employer or in the same field. If you are self-employed or have variable income, seek out a mortgage broker who has experience with non-traditional income situations.

Stage Two: Searching for the Right Home

Getting Clear on Your Budget

Before you start touring homes, get a clear picture of what you can realistically afford. This is what you can comfortably manage month to month, including mortgage payments, property taxes, insurance, and ongoing maintenance.

Getting pre-approved for a mortgage before you start searching is one of the most practical steps a first-time buyer can take. Pre-approval tells you exactly how much a lender is willing to offer based on your financial profile, which keeps your search focused and makes you a more credible buyer when it comes time to make an offer.

It also protects you from the easy trap of looking at homes that are just outside your budget. A home that is $50,000 over what you were approved for can be difficult to walk away from once you have toured it. Keeping your search within your pre-approved range makes the process more productive and far less frustrating.

Defining Your Needs and Wants

Once you know your budget, get specific about the home itself. Separating must-haves from nice-to-haves will save you a significant amount of time and help you make clearer decisions under pressure.

Must-haves are the features a home cannot do without based on your lifestyle and priorities. Maybe you need a minimum of two bedrooms because you work from home and require a dedicated office. Maybe you cannot consider anything that requires parking more than a short walk away. These are your filters.

Nice-to-haves are features you would love to find but can live without, or add later. An updated kitchen, a finished basement, or a big backyard may be on your wish list, but shouldn’t necessarily rule out a property that otherwise checks all your most important boxes.

Think ahead, too. A home that works for your life today may look different in five years. If there is any chance your family or living situation will change, factor that into your search now rather than outgrowing the home before your mortgage renews.

Choosing the Right Location

Location is the one thing you cannot change about a home. You can renovate the kitchen, replace the roof, and redo the landscaping, but you cannot move the house to a different street. Choosing the right location deserves as much thought as choosing the right property.

Consider the everyday experience of living there. How does the neighbourhood feel at different times of day? What is the commute like to work or transit? Are the shops, schools, parks, and services you use regularly within a reasonable distance?

Also think about the long-term. Neighbourhoods evolve, and a home in an area that is seeing investment and growth may appreciate more over time than a similar home in a more stagnant area. Your real estate agent can speak to local trends and what they have observed in the communities you are considering.

Using Online Tools Wisely

Online listings are a useful starting point, but they work best when used with discipline. Set up filters that match your criteria and budget, and enable alerts for new listings so you are not constantly refreshing pages manually. Most major listing platforms allow you to save searches and receive notifications when matching homes come up.

Virtual tours have become a helpful screening tool, particularly for buyers who are looking in multiple neighbourhoods at once. They can narrow your list before you commit to in-person visits, which saves time for everyone involved.

That said, photos and virtual tours are designed to show a home at its best. They are not a substitute for walking through a property yourself.

Touring Homes With Confidence

When you walk through a home, your job is to look beyond the staging and the fresh coat of paint. Focus on the things that are expensive or complicated to change.

Ask about the age and condition of major systems, including the furnace, air conditioning, water heater, roof, and windows. Find out when updates were last made and whether any renovation work was properly permitted. Ask about utility costs. A beautifully updated home with unexpectedly high hydro or gas bills can affect your monthly budget.

Take notes and photos during each viewing. After a few tours, homes start to blend together in your memory. Having a consistent record of each property makes it much easier to compare them honestly once the visits are done.

Pay attention to anything that feels off during a showing. Trust your observations, not just your enthusiasm. A great real estate agent will help you see past the surface and flag things worth a closer look.

Stage Three: Buying Your First Home

Making an Offer and Negotiating

You have done the saving. You have done the searching. Now it’s time to make an offer.

An offer is a formal legal document that outlines the price you are willing to pay and the terms under which you are prepared to purchase the home. It is not simply a number. The structure of an offer matters, including the closing date, the deposit amount, and any conditions attached.

Determining a competitive offer requires understanding what similar homes in the area have recently sold for, how long the property has been on the market, and whether there is likely to be competing interest from other buyers. Your real estate agent is your best resource here. They have access to recent sales data and can help you develop a strategy that reflects the actual market.

Negotiations and counteroffers are a normal part of the process. Be prepared for a response that is not exactly what you offered, and know in advance what your walk-away point is. Having that clarity before the negotiation starts means you are making decisions from a position of reason rather than pressure.

Understanding Conditions and Due Diligence

Conditions are clauses attached to an offer that give the buyer a defined period of time to complete specific due diligence before the deal becomes firm. They are an important form of protection for first-time buyers.

A financing condition allows you to confirm that your mortgage financing has been formally approved for this specific property before you are legally committed to the purchase. Even with a pre-approval in hand, lenders still need to assess the property itself.

A home inspection condition allows you to have a qualified inspector assess the physical condition of the home, including the structure, systems, and any potential issues that are not visible to the naked eye. A thorough inspection report helps you make an informed decision and, if issues are found, may give you grounds to renegotiate or walk away.

Review all disclosures and property information provided by the seller carefully. Your real estate agent and real estate lawyer can help you understand what you are reviewing and whether anything requires follow-up.

Understanding Closing Costs

Many first-time buyers are caught off guard by the costs that come due on closing day beyond the down payment. Budgeting for these in advance prevents a stressful scramble at the end of the process.

Land transfer tax is one of the largest closing costs. In Ontario, it is calculated as a percentage of the purchase price, and buyers in Toronto pay an additional municipal land transfer tax on top of the provincial amount. First-time buyers may qualify for a rebate that reduces or eliminates this cost, depending on the purchase price.

Legal fees cover the work done by your real estate lawyer to review the purchase agreement, conduct a title search, register the transfer of ownership, and handle the financial transactions on closing day. Budget approximately $1,500 to $2,500 for legal fees, though costs vary.

Home insurance must be in place before a lender will release mortgage funds. Get quotes from multiple providers and make sure your coverage reflects the actual replacement cost of the home.

Moving expenses, utility setup fees, and any immediate repairs or updates should also factor into your total budget. As a general guideline, first-time buyers should budget 1.5% to 4% of the purchase price to cover closing costs in addition to their down payment.

Closing Day

Closing day is the final step in the purchase process. On this day, your lawyer finalizes the paperwork, your lender releases the mortgage funds, and the legal ownership of the property transfers to you.

In advance of closing, you will work with your lawyer to review and sign all required documents. You will need to provide the remainder of your down payment and closing costs in certified funds. Your lawyer handles the rest, including registering the transfer of ownership with the land registry office and paying out any existing mortgage the seller had on the property.

Once everything is complete, you receive the keys to your new home. At that point, you are officially a homeowner.

Working With Voortman Realty

Buying a first home is a big undertaking, and having the right people in your corner makes a meaningful difference at every stage.

The Voortman Realty team works with first-time buyers throughout the entire journey, from the early stages of saving and planning through to the final steps of negotiation, conditions, and closing. We bring local expertise and ongoing knowledge of Hamilton and the surrounding communities, so our clients are always working from an accurate, up-to-date picture of the market.

Whether you are starting to think about homeownership or you are ready to start your search in earnest, we are here to answer your questions and help you move forward with confidence.

Contact the Voortman Realty team today. We’d love to help you get started!