It took three years for Ross Davison and his wife to purchase their first home.
The Ottawa couple began looking before the pandemic but were repeatedly sidelined by rapidly rising house prices, climbing interest rates and tougher mortgage rules.
香蕉视频直播淚t felt like a constantly changing game,香蕉视频直播� Davison said. 香蕉视频直播淭hings were always jumping just out of reach.香蕉视频直播�
With a baby on the way last spring, the couple ended up scaling back their wish list and put a bid in on a suburban townhouse.
香蕉视频直播淚ronically, we saw these units when we first started looking but we didn香蕉视频直播檛 want to share a wall,香蕉视频直播� he said. 香蕉视频直播淲e ended up buying one three years later for double the price.香蕉视频直播�
First-time homebuyers in Canada are facing the toughest real estate market in generations.
Skyrocketing home prices and massive interest rate spikes have driven affordability to its worst level in decades, according to a TD Economics report, leaving some first-time buyers shut out of the market altogether.
First-time homebuyers have traditionally accounted for more than half of all purchases. But that share has been declining since the pandemic began, reaching a low of 46.8 per cent in June 2021 as real estate investors and multiple-property owners picked up the difference, TD said.
Although house prices are beginning to edge down, overall affordability hasn香蕉视频直播檛 improved.
香蕉视频直播淭he drop in prices has not offset the effect of higher interest rates,香蕉视频直播� said RBC economist Robert Hogue. 香蕉视频直播淥ur affordability measure is still deteriorating.香蕉视频直播�
Real estate experts say there香蕉视频直播檚 a steeper-than-usual learning curve ahead for many first-time homebuyers. Still, they say there are tips and tricks that can help.
香蕉视频直播淭he home ownership dream is not dead,香蕉视频直播� Hogue said. 香蕉视频直播淚 think it can still be achieved by showing flexibility on when to achieve it and what form it香蕉视频直播檚 going to take.香蕉视频直播�
The first call all prospective first buyers should make is to a real estate agent, said Despina Zanganas, a Toronto Realtor with PSR Brokerage.
香蕉视频直播淧eople often wait too long to try and find a Realtor,香蕉视频直播� she said. 香蕉视频直播淚 suggest reaching out to Realtors a year before you plan to buy.香蕉视频直播�
Buyers often rely on word of mouth to find a real estate agent, but Zanganas said it香蕉视频直播檚 important to shop around.
香蕉视频直播淚t香蕉视频直播檚 important to find someone you connect with and is right for you,香蕉视频直播� she said.
The next step is to figure out what you can afford, Zanganas said.
香蕉视频直播淚香蕉视频直播檝e had first-time homebuyers that say they want to buy a house in (affluent Toronto neighbourhood) Rosedale and they have a $900,000 budget,香蕉视频直播� she said. 香蕉视频直播淎 mortgage agent will help set your expectations properly.香蕉视频直播�
香蕉视频直播淭hey香蕉视频直播檒l also flag all the additional closing costs,香蕉视频直播� she added. 香蕉视频直播淥ften first-time buyers don香蕉视频直播檛 think about the extras.香蕉视频直播�
Meanwhile, the federal government has launched several programs aimed at helping first-time buyers.
The recently announced Tax-Free First Home Savings Account gives new buyers the ability to save $40,000 on a tax-free basis towards the purchase of a first home in Canada.
香蕉视频直播淚t香蕉视频直播檚 a powerful way to come up with a down payment for a first home,香蕉视频直播� said James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.
It香蕉视频直播檚 an improvement from the Home Buyers香蕉视频直播� Plan, which allows Canadians to withdraw up to $35,000 from a Registered Retirement Savings Plan to come up with money for a down payment but must be repaid within 15 years, he said.
Still, the new registered plan is slated to startnext year, so Laird said it will be a few years before it helps buyers.
Another new program called the First-Time Homebuyer Incentive offers up to 10 per cent towards a new home purchase through a shared-equity mortgage with the government.
But Laird warns new buyers to steer clear of the program, noting that co-owning a home with the government is an 香蕉视频直播渙dd香蕉视频直播� scenario that could backfire.
香蕉视频直播淲e think it香蕉视频直播檚 quite detrimental,香蕉视频直播� he said. 香蕉视频直播淭he government becomes a co-owner 香蕉视频直播� they don香蕉视频直播檛 pay the maintenance costs or property taxes, but they share in the potential appreciation. We find it flawed from many angles.香蕉视频直播�
Mortgage loan insurance from the Canada Mortgage and Housing Corporation allows buyers to pay a smaller down payment in exchange for a fee of up to four per cent.
香蕉视频直播淭he fee is clear and upfront and there香蕉视频直播檚 no muddying of who owns what,香蕉视频直播� Laird said.
However, mortgage loan insurance is available only for properties with a purchase price below $1,000,000. Laird said the maximum should be higher in cities like Toronto and Vancouver.
香蕉视频直播淭he government has no interest in helping affluent people buy multimillion dollar homes,香蕉视频直播� Laird said. 香蕉视频直播淏ut if you buy a $1.2 million semi in Toronto with no parking, you香蕉视频直播檙e not some rich country club guy. You香蕉视频直播檙e trying to find a home for your family.香蕉视频直播�
Meanwhile, even once homeownership is finally in reach, first-time buyers should expect to feel 香蕉视频直播渁bsolutely sick to their stomach,香蕉视频直播� he said.
香蕉视频直播淭he normal first-time homebuying experience is an emotional roller coaster.香蕉视频直播�
Real estate agent Zanganas agrees, noting that first-time homebuyers are 香蕉视频直播渞eally afraid of losing their shirts and making the wrong decision.香蕉视频直播�
香蕉视频直播淚 always warn them that once they sign on the dotted line, they香蕉视频直播檙e going to worry it was the worst mistake of their life. Everybody goes through that.香蕉视频直播�
After welcoming a baby girl and settling into their new townhouse, Ross Davison and his wife, Katherine MacDonald, are breathing a sigh of relief.
香蕉视频直播淧art of the magic of having to be rigorous in our search is that we really got to know all the little neighbourhoods in Ottawa really well,香蕉视频直播� MacDonald said.
香蕉视频直播淲e opened ourselves up to things we never would have considered before and we landed somewhere we are really happy.香蕉视频直播�
Brett Bundale, The Canadian Press
READ ALSO:
Like us on and follow us on .
