High prices are pushing homebuyers to consider drastic steps

The high cost of home ownership is pushing first-time homebuyers to consider costly steps.

That’s according to a new survey by TD Bank, which found that 74% of Americans planning to buy their first home would consider using a 50-year mortgage if it was available, while 78% of younger millennials and 74% of Gen Zers would use their 401(k) plans to help purchase a home if it was allowed.

“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.”

Thirty-one percent of the prospective first-time homebuyers surveyed said they have reduced or stopped contributing to retirement accounts while saving for their home purchase. Meanwhile, 54% of the respondents said they plan to spend up to 35% of their monthly income on mortgage payments despite guidance suggesting no more than 28%. That 54% response rate is up from 48% in a 2025 survey.

https://www.bizjournals.com/seattle/news/2026/05/27/homeowners-first-time-buyers-50-year-mortgage.html