MOUNT LAUREL, N.J., May 14, 2026 – Affordability pressures are driving aspiring homebuyers to make significant tradeoffs on their path to purchase, according to an annual TD Bank U.S. (“TD”) survey of Americans planning to buy their first home in 2026. Nearly three-quarters (74%) of all respondents would consider using a 50-year mortgage if available, while 78% of younger millennials and 74% of Gen Z respondents would likely use their 401(k) to help purchase their first home if allowed. Fully half of first-time homebuyers surveyed would feel comfortable buying a fixer-upper in today’s market.
“First-time homebuyers’ desire and motivation to buy remains strong, and they are approaching their budgeting and financial boundaries with flexibility,” said Steve Kaminski, Head of Residential Lending at TD Bank U.S. “They are open to various alternative approaches to make that first purchase possible amid elevated rates, broader economic uncertainty and limited inventory.”
Nearly one-third of first-time homebuyers (31%) surveyed say they have reduced or stopped contributing to retirement accounts while saving for their home purchase. And while traditional guidance recommends people spend no more than 28% of their monthly income on mortgage payments, more than half of first-time homebuyers (54%) surveyed say they anticipate spending between 26% and 35%, up from 48% of homebuyers in 2025.
Even so, first-time homebuyers aren’t backing down: 81% of respondents say they feel optimistic about the housing market this year, and an equal share believe homeownership remains a smart long-term investment.
Shifting Timelines, Same Aspirations
The timeline for homeownership is shifting for today’s first-time homebuyers. According to the National Association of Realtors, the median age of a first-time homebuyer is 40. Gen Zers, however, are thinking earlier, with nearly half (46%) of respondents saying they expected to purchase their first home between 25 and 29.
Many first-time homebuyers also plan to lean on external financial support to make purchasing a home possible. Two-thirds (67%) of first-time homebuyers surveyed say they are receiving or planning to receive financial support from family or loved ones, rising to 76% among younger millennials and 70% among Gen Z respondents.
They’re also preparing to own for the long-term, with nearly three out of five (58%) respondents expecting to live in their home for more than 10 years, up from 51% in 2025.
Credit as a Financial-Readiness Indicator
First-time homebuyers are increasingly focused on their credit report, using it as a tool to strengthen their financial foundation. Among those who are actively monitoring their credit report, many first-time buyers surveyed are looking to make improvements to their credit, including making on-time payments (70%, up from 60% in 2025), checking their credit reports for errors (59%, up from 44% in 2025) and paying down debt (57%, up from 51% in 2025).
On top of some proactively taking action to improve their credit scores, over half of first-time homebuyers (55%) surveyed have created a homeownership budget, also up from 48% in 2025. “This uptick signals an increased motivation to stay competitive in today’s market,” said Scott Lindner, National Sales Director at TD.
Guidance and Trusted Resources Remain Critical
While first-time homebuyers are taking more steps to financially prepare, they’d like to know more about what price range they can realistically afford (56%), how much home insurance and property taxes would cost (55%) and what’s included in the closing costs (54%).
At the same time, many are not engaging with key financial resources, as only 27% of first-time homebuyers surveyed say they’ve spoken with a mortgage lender as part of the homebuying process. And only 22% of first-time homebuyers surveyed have secured pre-qualification or pre-approval, despite their ambitions to own in 2026.
“First-time homebuyers crave access to clear guidance and reliable advice, which is more important than ever in today’s environment,” said Lindner. “Meeting with a lender early in the process helps them better understand how they should structure their timeline, prepare their full financial picture, make a budget and assess other common costs in their region.”