MOUNT LAUREL N.J.– A new survey from TD Bank found first-time homebuyers remain eager to purchase homes despite elevated mortgage rates, affordability pressures and limited inventory, with many willing to embrace nontraditional financing strategies to make homeownership possible.
The survey, which polled 1,003 Americans planning to buy their first home this year, found nearly three-quarters of respondents said they would consider a 50-year mortgage if one were available. In addition, 78% of younger millennials and 74% of Gen Z respondents said they would tap their 401(k) retirement savings to fund a first home purchase if permitted to do so.
Half of respondents also said they would be comfortable purchasing a fixer-upper under current market conditions.
Strong Desire, But…
“First-time homebuyers’ desire and motivation to buy remains strong, and they are approaching their budgeting and financial boundaries with flexibility,” Steve Kaminski, head of residential lending at TD Bank US, said in the report. “They are open to various alternative approaches to make that first purchase possible amid elevated rates, broader economic uncertainty and limited inventory.”
The survey highlighted growing financial strain among aspiring buyers, including pressure on retirement savings and monthly budgets.
The Findings
Among the findings:
- 31% said they had reduced or halted retirement contributions while saving for a home purchase.
- 54% anticipated spending between 26% and 35% of their monthly income on mortgage payments, up from 48% a year earlier.
- Two-thirds said they were receiving or planned to receive financial support from family members.
- Among younger millennials, 76% expected family financial support.
The survey also found buyers remained optimistic despite affordability challenges.
Additional Findings
Additional findings included:
- 81% said they were optimistic about the housing market in 2026.
- 81% also agreed homeownership remains a sound long-term investment.
- Nearly three in five expected to remain in their first home for more than a decade, up from 51% a year earlier.
Not Engaging With Lenders
TD Bank said many first-time buyers are not engaging with lenders early in the homebuying process, despite plans to purchase a home this year.
According to the survey:
- Only 27% said they had spoken with a mortgage lender during the homebuying process.
- Just 22% had obtained pre-qualification or pre-approval for a mortgage.
Proactive About Preparedness
The survey also found buyers are becoming more proactive about financial preparedness.
Among the trends cited:
- 70% said they were making on-time payments while monitoring their credit, up from 60% the prior year.
- 57% said they were actively paying down debt, compared with 51% in 2025.
- 59% said they were checking credit reports for errors, up from 44% a year earlier.
- More than half said they had created a formal homeownership budget, up from 48% in 2025.
