New poll finds families pooling funds; first-time buyers waiting longer and renewal stress still high
Canadians are increasingly turning to joint purchases to navigate real estate costs, according to RBC’s latest Home Ownership Poll.
Among Canadians planning to buy a home within two years, 53 percent say they would consider a multi-generational purchase, compared with 44 percent of total survey respondents.
Existing homeowners are also embracing the strategy. Thirty-five percent say they would consider selling their current residence to purchase a home jointly with an adult child to assist them in entering the housing market.
Affordability drives shared ownership
When prospective buyers were asked why multi-generational purchases were becoming the preferred route, they cited key economic factors:
- 34 percent attribute the trend directly to housing affordability challenges
- 32 percent view joint ownership as a prudent strategy to manage overall living costs
- 26 percent consider pooled buying a financial necessity rather than a preference
RBC senior vice president of home equity finance Janet Boyle said buying together is not just a mortgage decision. It also carries long-term implications for future property purchases, tax planning, estate distribution, and capital gains upon sale.
“Those conversations are much easier to have at the start, and getting holistic advice can make them simpler,” she said.
Advisors working with multigenerational clients should be prepared to address tax planning, estate distribution, and capital gains implications from the outset.
Buyers wait longer
The poll also highlights a significant shift in homeownership timelines and priorities, particularly among first-home buyers.
While current homeowners purchased their first property at an average age of 29, non-owners now expect to be 41 before they can afford to buy.
On top of this, uncertainty remains widespread, with half of non-owners saying they do not know when they will be able to purchase a home.
For first-time buyers planning to enter the market within the next two years, long-term suitability is also a major consideration.
For advisors, that extended timeline means managing clients who are balancing down-payment accumulation alongside debt servicing, retirement contributions, and other competing priorities.
Around 74 percent want a home they will not outgrow, prompting many to stretch their initial budgets to secure a property that meets their future needs.
However, prospective buyers remain divided over market conditions. Half of them fear they will be priced out if they wait too long, while the other half worry about buying just before property prices decline.
Renewals still sting
RBC reports that 51 percent of owners renewing within two years say renewal feels are almost as stressful as buying a first home. Among them, 82 percent worry about rate increases and 60 percent expect household strain.
RBC illustrates that a move from two to five percent on a $478,000 home with a 25-year-mortgage lifts payments from $2,024 to $2,631.
Separate research found that 44 percent of mortgage holders would struggle to manage higher payments if their repayments increased by less than 15 percent.
Renewal season is a natural entry point for a broader cash flow and debt review. Eighty-four percent of those renewing within two years say having the right advice makes all the difference, per the RBC poll.
Strategic considerations when buying multi-generational homes
Co-borrowing agreements create legal and financial obligations that persist long after closing.
Because lenders assess co-borrowers jointly—evaluating combined income, debt obligations, and credit scores—borrowing capacity can increase. However, each co-borrower remains legally responsible for the full mortgage debt and appears on title.
RBC recommends that families establish formal agreements before buying a home, covering four key areas:
- mortgage and title ownership structure
- documentation of down-payment contributions
- allocation of ongoing monthly operating costs
- a defined exit strategy should one party wish to sell
Advisors can work with legal and tax professionals to assess cash flow, review estate planning risks and establish clear exit clauses.
Financial caregivers and parents may need help managing equity transfers and multigenerational wealth, with half of Canada’s 3.6 million financial caregivers using an advisor. First-time buyers need to balance borrowing costs with long-term goals, while mortgage holders approaching renewal should review their cash flow and debt structures.
