For many Gen Zers (people between the ages of 12 and 27), adulthood is synonymous with dreaming big, and buying a first home often tops that list. But in Vancouver, one of Canada’s priciest real estate markets, affordability challenges can make this dream feel out of reach.

The good news? Tools, strategies and policies exist to help navigate this challenging market.

Government programs to save for your first home

• First home savings account (FHSA): The FHSA is a federal program that allows first-time homebuyers to save up to $40,000 tax-free (maximum $8,000 annually). Think of it as a combination of a FHSA and a registered retirement savings plan (RRSP) designed specifically for your home-buying journey. While the tax relief is a major perk, saving this amount can still feel out of reach in Vancouver, where living expenses are sky-high.
• Home buyers’ plan (HBP): If you’ve been contributing to your RRSP, you can withdraw up to $60,000 tax-free through the home buyers’ plan. This can be a game-changer if you’ve been diligently saving for retirement. Just remember, you’ll need to repay the funds over the next 15 years, so plan accordingly.

Mortgage updates

• Longer amortizations: With 30-year amortizations now available for first-time buyers, your monthly payments could drop by about eight percent, although you will be paying significantly more interest over the longer life of the loan. However, that allows for more breathing room in your budget for other expenses.

• Higher insured mortgage caps: In Vancouver, where prices can feel sky-high, the new insured mortgage cap of $1.5 million could give you access to homes that were previously out of reach. To qualify, you need strong income and credit. If you’re not quite there yet, consider building your credit score and reducing your debt-to-income ratio to strengthen your application.

B.C.’s housing subsidy promise

During the recent B.C. election, the NDP pledged a bold initiative to cover up to 40 percent of the cost of new homes for first-time buyers. If implemented, this program could dramatically lower upfront costs, especially for those struggling to save for a down payment. Staying informed on government announcements and acting quickly when opportunities arise will be crucial.

Economic challenges: The gig economy and the “bank of mom and dad”

For many Gen Zers, job stability—or the lack of it—can feel like the biggest hurdle. If you’re in the gig economy or working freelance, qualifying for a mortgage might be trickier, as banks want to see steady, reliable income.

An action plan

1. Consider a co-signer: A parent or family member with strong credit can help you secure a mortgage.
2. Track your income: Keep detailed records of your earnings and expenses to demonstrate financial discipline.
3. Start small: Even if you can’t afford your dream home right away, getting into the market with a smaller property can help you build equity for the future.

Adapting to the market: Flexibility over tradition

Homeownership doesn’t have to look like your parents’ experience. Today’s market is all about creativity and flexibility. There are alternative options you can explore, such as:
• Co-ownership: Team up with a friend or family member to buy a property together.
• Smaller homes: Micro-apartments or studios can offer an affordable entry point.
• Co-living spaces: These setups allow you to share costs with others while living in vibrant, urban communities.

The road ahead

Programs like the FHSA, extended amortizations, and B.C.’s potential housing subsidy offer some relief but may not fully close Vancouver’s affordability gap. For Gen Z buyers, success will depend on a blend of government support, financial discipline and family assistance. Whether renting or owning, this generation is reshaping the narrative of homeownership in Vancouver, valuing flexibility, creativity and resilience above all else.