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.
91裸聊视频淚t felt like a constantly changing game,91裸聊视频� Davison said. 91裸聊视频淭hings were always jumping just out of reach.91裸聊视频�
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.
91裸聊视频淚ronically, we saw these units when we first started looking but we didn91裸聊视频檛 want to share a wall,91裸聊视频� he said. 91裸聊视频淲e ended up buying one three years later for double the price.91裸聊视频�
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 hasn91裸聊视频檛 improved.
91裸聊视频淭he drop in prices has not offset the effect of higher interest rates,91裸聊视频� said RBC economist Robert Hogue. 91裸聊视频淥ur affordability measure is still deteriorating.91裸聊视频�
Real estate experts say there91裸聊视频檚 a steeper-than-usual learning curve ahead for many first-time homebuyers. Still, they say there are tips and tricks that can help.
91裸聊视频淭he home ownership dream is not dead,91裸聊视频� Hogue said. 91裸聊视频淚 think it can still be achieved by showing flexibility on when to achieve it and what form it91裸聊视频檚 going to take.91裸聊视频�
The first call all prospective first buyers should make is to a real estate agent, said Despina Zanganas, a Toronto Realtor with PSR Brokerage.
91裸聊视频淧eople often wait too long to try and find a Realtor,91裸聊视频� she said. 91裸聊视频淚 suggest reaching out to Realtors a year before you plan to buy.91裸聊视频�
Buyers often rely on word of mouth to find a real estate agent, but Zanganas said it91裸聊视频檚 important to shop around.
91裸聊视频淚t91裸聊视频檚 important to find someone you connect with and is right for you,91裸聊视频� she said.
The next step is to figure out what you can afford, Zanganas said.
91裸聊视频淚91裸聊视频檝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,91裸聊视频� she said. 91裸聊视频淎 mortgage agent will help set your expectations properly.91裸聊视频�
91裸聊视频淭hey91裸聊视频檒l also flag all the additional closing costs,91裸聊视频� she added. 91裸聊视频淥ften first-time buyers don91裸聊视频檛 think about the extras.91裸聊视频�
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.
91裸聊视频淚t91裸聊视频檚 a powerful way to come up with a down payment for a first home,91裸聊视频� said James Laird, co-CEO of Ratehub.ca and president of CanWise mortgage lender.
It91裸聊视频檚 an improvement from the Home Buyers91裸聊视频� 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 91裸聊视频渙dd91裸聊视频� scenario that could backfire.
91裸聊视频淲e think it91裸聊视频檚 quite detrimental,91裸聊视频� he said. 91裸聊视频淭he government becomes a co-owner 91裸聊视频� they don91裸聊视频檛 pay the maintenance costs or property taxes, but they share in the potential appreciation. We find it flawed from many angles.91裸聊视频�
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.
91裸聊视频淭he fee is clear and upfront and there91裸聊视频檚 no muddying of who owns what,91裸聊视频� 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.
91裸聊视频淭he government has no interest in helping affluent people buy multimillion dollar homes,91裸聊视频� Laird said. 91裸聊视频淏ut if you buy a $1.2 million semi in Toronto with no parking, you91裸聊视频檙e not some rich country club guy. You91裸聊视频檙e trying to find a home for your family.91裸聊视频�
Meanwhile, even once homeownership is finally in reach, first-time buyers should expect to feel 91裸聊视频渁bsolutely sick to their stomach,91裸聊视频� he said.
91裸聊视频淭he normal first-time homebuying experience is an emotional roller coaster.91裸聊视频�
Real estate agent Zanganas agrees, noting that first-time homebuyers are 91裸聊视频渞eally afraid of losing their shirts and making the wrong decision.91裸聊视频�
91裸聊视频淚 always warn them that once they sign on the dotted line, they91裸聊视频檙e going to worry it was the worst mistake of their life. Everybody goes through that.91裸聊视频�
After welcoming a baby girl and settling into their new townhouse, Ross Davison and his wife, Katherine MacDonald, are breathing a sigh of relief.
91裸聊视频淧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,91裸聊视频� MacDonald said.
91裸聊视频淲e opened ourselves up to things we never would have considered before and we landed somewhere we are really happy.91裸聊视频�
Brett Bundale, The Canadian Press
READ ALSO:
Like us on and follow us on .
