Re/Max Finds Canadians Will Compromise to Buy. That Doesn't Fix Affordability
Location and type of home topped the list. When RE/MAX asked Canadians what they would give up to buy, roughly six in ten said they would trade size or location to get into the market, and most still called homeownership their best long-term investment. Read quickly, that sounds like a market adjusting. Buyers have lowered their sights, so they can buy.
That view deserves a fair hearing, because much of it is right. Here in Edmonton, a compromise often works well. A townhouse or duplex instead of a detached house, or a neighbourhood like Spruce Avenue instead of a newer suburb, can get a first-time buyer in years sooner. Owning something modest beats renting while you wait for the perfect place. I would say that to most clients, and I do.
The trouble is that a compromise lowers the price of the house. It does not always lower the cost of owning it. Those are two different numbers, and buyers often mix them up.
Where the savings leak out
Take the three most common trade-offs I see.
The condo instead of the house. The purchase price drops, and so does the mortgage. But condo fees come on top of the mortgage payment, and in Alberta, rising building insurance and reserve fund contributions have been pushing those fees up. The reserve fund is the condo's savings account for big repairs. A fee increase hits your monthly budget the same way a rate increase would. The only difference is that no lender announces it.
The older home in a mature area. The asking price looks great. Then the inspection shows a roof near the end of its life, an aging furnace and original windows. Those costs do not go into the mortgage. They come out of savings, often in the first few years, right when a new owner has the least cushion.
The home that is too small. This one costs the most. If you buy a place you will outgrow in two years, you pay legal fees, moving costs and a realtor's commission on the way out, then land transfer and closing costs on the way back in. A compromise you can only live with for two years can cost more than the extra you would have paid up front.
What compromise does not change
Compromise is something one household does. Affordability is about incomes against prices across a whole market. When most buyers aim lower at once, more of them compete for the same townhouses and starter homes. That props up prices at the bottom of the market, which is exactly where first-time buyers shop. In other words, everyone compromising does not make anyone's compromise cheaper.
The market itself is not moving fast. CREA's national figures released in September 2026 showed sales down 6.9% from a year earlier. Policy has helped some. The insured mortgage price cap is now $1.5 million, and first-time buyers can get a 30-year amortization on an insured mortgage. Amortization is the total time you take to pay the loan off. A longer one lowers your monthly payment but adds interest over the life of the loan. These rules widen who can qualify. They do not make homes cost less.
A better way to judge a compromise
Instead of asking "what am I willing to give up?", ask two questions.
First, what is the full monthly cost? Add up mortgage, property tax, condo fees, utilities and a realistic repair fund. Compare that number across your options, not just the list prices.
Second, how long can I live here comfortably? If the answer is five to seven years, a townhouse or duplex can be a solid step that builds equity for a move-up purchase. If the answer is two years, the savings may disappear in transaction costs.
Some trade-offs pay you back. A home with a legal basement suite can bring in rental income that lenders may count toward qualifying. An FHSA or a Home Buyers' Plan withdrawal from your RRSP can lift your down payment without changing the house at all.
Willingness to compromise gets you in the door. Whether you can afford to stay depends on the numbers after you move in, and those are worth running before you choose.
Location and type of home topped the list. When RE/MAX asked Canadians what they would give up to buy, roughly six in ten said they would trade size or location to get into the market, and most still called homeownership their best long-term investment. Read quickly, that sounds like a market adjusting. Buyers have lowered their sights, so they can buy.
That view deserves a fair hearing, because much of it is right. Here in Edmonton, a compromise often works well. A townhouse or duplex instead of a detached house, or a neighbourhood like Spruce Avenue instead of a newer suburb, can get a first-time buyer in years sooner. Owning something modest beats renting while you wait for the perfect place. I would say that to most clients, and I do.
The trouble is that a compromise lowers the price of the house. It does not always lower the cost of owning it. Those are two different numbers, and buyers often mix them up.
Where the savings leak out
Take the three most common trade-offs I see.
The condo instead of the house. The purchase price drops, and so does the mortgage. But condo fees come on top of the mortgage payment, and in Alberta, rising building insurance and reserve fund contributions have been pushing those fees up. The reserve fund is the condo's savings account for big repairs. A fee increase hits your monthly budget the same way a rate increase would. The only difference is that no lender announces it.
The older home in a mature area. The asking price looks great. Then the inspection shows a roof near the end of its life, an aging furnace and original windows. Those costs do not go into the mortgage. They come out of savings, often in the first few years, right when a new owner has the least cushion.
The home that is too small. This one costs the most. If you buy a place you will outgrow in two years, you pay legal fees, moving costs and a realtor's commission on the way out, then land transfer and closing costs on the way back in. A compromise you can only live with for two years can cost more than the extra you would have paid up front.
What compromise does not change
Compromise is something one household does. Affordability is about incomes against prices across a whole market. When most buyers aim lower at once, more of them compete for the same townhouses and starter homes. That props up prices at the bottom of the market, which is exactly where first-time buyers shop. In other words, everyone compromising does not make anyone's compromise cheaper.
The market itself is not moving fast. CREA's national figures released in September 2026 showed sales down 6.9% from a year earlier. Policy has helped some. The insured mortgage price cap is now $1.5 million, and first-time buyers can get a 30-year amortization on an insured mortgage. Amortization is the total time you take to pay the loan off. A longer one lowers your monthly payment but adds interest over the life of the loan. These rules widen who can qualify. They do not make homes cost less.
A better way to judge a compromise
Instead of asking "what am I willing to give up?", ask two questions.
First, what is the full monthly cost? Add up mortgage, property tax, condo fees, utilities and a realistic repair fund. Compare that number across your options, not just the list prices.
Second, how long can I live here comfortably? If the answer is five to seven years, a townhouse or duplex can be a solid step that builds equity for a move-up purchase. If the answer is two years, the savings may disappear in transaction costs.
Some trade-offs pay you back. A home with a legal basement suite can bring in rental income that lenders may count toward qualifying. An FHSA or a Home Buyers' Plan withdrawal from your RRSP can lift your down payment without changing the house at all.
Willingness to compromise gets you in the door. Whether you can afford to stay depends on the numbers after you move in, and those are worth running before you choose.
Read Next
Five Money Checks Canadian Snowbirds Should Finish Before Heading South
Canadian Bank Security Assumes a Human Is Logging In. AI Agents Break That
Before Storm Winds Arrive, Turn 5 Yard Hazards Into Protective Buffers
A 25 Basis Point Hike Doesn't Erase Variable's Long-Run Edge Over Fixed