In some cases, it might be to your advantage to buy once you have the minimum that’s required for the down payment. Instead, you have the option of paying the minimum down payment, meaning as little as 5% for homes under $500,000, which could help you enter the market faster. While some financial experts recommend putting down 20%, that’s not a realistic expectation for everyone. The first thing you’ll likely ask yourself as a first-time home buyer in Ontario is how much you need to save for a down payment. What you’ll need to buy a home in Ontario In the meantime, we’ve pulled together a guide for those looking to get a toehold on the property ladder. It will be some time before we know if these measures will have their intended impact. In its 2022 budget, unveiled in April, the Canadian federal government announced new initiatives aimed at making home ownership more affordable. There’s no doubt that being a first-time home buyer in Ontario is more challenging than ever. Whether a home buyer plans to get a variable-rate mortgage or a fixed-rate mortgage, they can expect to pay more as interest rates climb. Although housing inventory remains far below the norm, an increase in the cost of borrowing is expected to soften demand. There are now early signs that the Canadian housing market may be starting to cool. The result? Prices leaped not only in the hottest markets, such as those in the Greater Toronto Area, but also across smaller cities in the province. The Bank of Canada, fearing a recession, slashed already low interest rates to 0.25%, making it easier for people to take on larger mortgages.
Lockdown measures sent many people in search of larger properties in which they could comfortably work from home. Amid soaring prices, many people have experienced the same relentless competition and have had to expand their search criteria and stretch their budget to land a property.ĭuring the COVID-19 pandemic, a perfect storm of low supply and high demand made prices surge.
Our journey as first-time home buyers in Ontario is by no means unique. I'm buying a home I'm renewing/refinancing You will be leaving MoneySense.