How Long Does It Take to Save for a Down Payment?

Jun 16

If you're dreaming of homeownership, one of the first questions you'll probably ask is: how long does it take to save for a down payment? Whether you're a first-time homebuyer or thinking about moving up, understanding the typical savings timeline can help you plan more confidently.

According to the 2025 CMHC Mortgage Consumer Survey, the average homebuyer in Canada took 3.4 years to save for their down payment. That’s a notable improvement from 2024, when the average timeline was 4.2 years.

Let’s break it down by savings timelines:

28% of homebuyers saved their down payment in less than a year
41% took between 1 and 5 years
15% needed 6 years or more

So what does this mean for you? First, it’s important to understand there’s no one-size-fits-all approach. Your timeline will depend on your income, current living expenses, how aggressively you save, and whether you’re receiving help from family.

Why Are Canadians Saving Faster?

There are a few reasons why Canadians may be saving faster for their down payments:

Rising rental costs are motivating buyers to get into the market sooner
Budgeting tools and automated savings are helping people stay on track
More awareness of down payment assistance programs and incentives

Additionally, many homebuyers are now starting their savings journey earlier—some as soon as they finish school or get their first job.

What About Gifted Down Payments?

One significant factor in down payment savings is gifted funds. In 2025, 35% of homebuyers received a gift or inheritance to help with their down payment. The average gift amount was $79,127.

Interestingly, 78% of buyers who received a gift said they still could have purchased their home without it—but they likely would have made concessions, such as choosing a smaller home or a less ideal location.

If you're planning to use a gifted down payment, most lenders will require:

A gift letter confirming the money does not need to be repaid
A 90-day history of the funds in your account
Confirmation that the gift came from an immediate family member

How to Start Saving Smarter

No matter your timeline, here are a few ways to speed up your savings:

Automate a monthly transfer into a high-interest savings account
Take advantage of programs like the First Home Savings Account (FHSA)
Track spending and identify “easy wins” to redirect toward your goal
Talk to a mortgage professional to understand your affordability and set realistic targets

Final Thoughts

Saving for a down payment in Canada takes time, discipline, and often some creativity. Whether you're a year away or five, the key is having a plan. With the right strategy—and possibly a little help—you can move from saving to shopping sooner than you think.

💬 Need help mapping out your down payment strategy? Let’s connect and create a plan that works for your goals and timeline.